Brookheart Brookheart

27-09-2022
Business

contestada

7. The government imposes a tax of $5 on a good and the producers’ price decreases by $2. Which of the
following could explain this price change?
a. Supply is perfectly elastic.
b. Demand is perfectly inelastic.
c. The elasticity of demand is less than the elasticity of supply, but neither curve is perfectly
elastic or inelastic.
d. The elasticity of demand is greater than the elasticity of supply, but neither curve is perfectly
elastic or inelastic.

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