[CFA level 1模拟真题]Version 4 Questions－Q22 face, elastic, likely, result, supply

cfaedu

Q22. For markets with perfectly elastic supply and perfectly inelastic supply, respectively, the

introduction of a tax will most likely result in:

Markets with perfectly elastic supply         Markets with perfectly inelastic supply

A.	A price increase, and the seller bears the tax.	A price increase, and the buyer bears the tax
B.	A price increase, and supply remains the same.	No change in price, and the seller bears the tax.
C.	A price increase, and the buyer bears the tax	No change in price, and the seller bears the tax
D.	No change in price, and the seller bears the tax	A price increase, and the buyer bears the tax

A. Answer A

B. Answer B

C. Answer C

D. Answer D

cfaedu

答案和详解如下：

Q22.   C  07 Modular Level 1, Vo1.1, pp 73-74   Study Sessions 4-15-c

Because in markets with perfectly elastic supply, price increases as a result of tax and the seller passes on the tax burden to buyers. In markets with perfectly inelastic supply, sellers maintain the same supply and price but absorb the tax burden themselves.

yayalei

thanks

LEEFEI571

xuan d

水模样

d

fantasy_ln

see

fantasy_ln

see

Linda_SCB

d

jungle1009

see

ondesert

d