If the demand for a product is perfectly inelastic and the supply curve is

# If the demand for a product is perfectly inelastic

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100.If the demand for a product is perfectly inelastic and the supply curveis upsloping, a \$1 excise tax per unit of output will: A. raise price by less than\$1.B. raise price by more than\$1.C.raise price by \$1.D. lower price by \$1.AACSB: Reflective ThinkingBlooms: AnalyzeDifficulty: 3 HardLearning Objective: 12-03 Explain the principles relating to tax shifting; tax incidence; and the efficiency lossescaused by taxes.Topic: Tax incidence and efficiency loss
101.Refer to the above figure in which Sis the before-tax supply curve and Stis the supply curve after an excise tax is imposed. The total tax collection from this excise tax will be area: AACSB: Reflective ThinkingBlooms: ApplyDifficulty: 2 MediumLearning Objective: 12-03 Explain the principles relating to tax shifting; tax incidence; and the efficiency lossescaused by taxes.Topic: Tax incidence and efficiency lossType: Graph
102.Refer to the above figure in which Sis the before-tax supply curve and Stis the supply curve after an excise tax is imposed. The efficiency loss of this tax will be area: AACSB: Reflective ThinkingBlooms: ApplyDifficulty: 2 MediumLearning Objective: 12-03 Explain the principles relating to tax shifting; tax incidence; and the efficiency lossescaused by taxes.Topic: Tax incidence and efficiency lossType: Graph
103.Refer to the above figure in which Sis the before-tax supply curve and Stis the supply curve after an excise tax is imposed. The burden of this tax is borne: AACSB: Reflective ThinkingBlooms: AnalyzeDifficulty: 3 HardLearning Objective: 12-03 Explain the principles relating to tax shifting; tax incidence; and the efficiency lossescaused by taxes.Topic: Tax incidence and efficiency lossType: Graph
104.The more inelastic is demand and supply, the: A. larger is the efficiency loss of an excise tax.B.smaller is the efficiency loss of an excise tax.C. higher the proportion of an excise tax paid by consumers.D. smaller the proportion of an excise tax paid by producers.AACSB: Reflective ThinkingBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 12-03 Explain the principles relating to tax shifting; tax incidence; and the efficiency lossescaused by taxes.Topic: Tax incidence and efficiency loss

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