If Demand Is More Inelastic Than Supply Is, the

question 18

Multiple Choice

If demand is more inelastic than supply is, the

• A)larger the portion of the tax that will be paid by producers
• B)larger the portion of the tax that will be paid by consumers
• C)more likely it is that the tax will be spread equally between producers and consumers
• D)smaller the portion of the tax that will be paid by consumers
• E)smaller the impact that an income tax will have on consumer preferences

---

Definitions:

Boardwalk Warehouse

A storage facility located near or on a boardwalk, typically used for storing goods that are transported via maritime routes.

Automotive Parts

Components and systems used in the construction and repair of motor vehicles, such as engines, brakes, and suspension systems.

Coinsurance

A type of insurance in which the insured and the insurer share the costs of covered expenses in a specified ratio after the deductible is met.

Property Insurance

A type of insurance policy that provides financial reimbursement to the owner or renter of a structure and its contents in case of damage or theft.