If the Government Eliminates a Tax on a Good with a Perfectly

question 158

Multiple Choice

If the government eliminates a tax on a good with a perfectly elastic supply,who benefits most?

• A) buyers
• B) sellers
• C) buyers if the demand is also perfectly elastic, otherwise sellers
• D) buyers if the demand is unit elastic, otherwise sellers
• E) Buyers and sellers benefit equally.

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Definitions:

Secondary Audience

Individuals or groups who are not the primary target for a message but who may still receive and interpret it.

Initial Audience

The primary group of people for whom a piece of communication is intended, identified at the beginning of the communication planning process.

Watchdog Audience

An audience that acts as a guardian or overseer, especially in holding institutions accountable for their actions.

Primary Audience

The main group of intended receivers for a particular message or piece of content.