Use the Following to Answer Question

question 35

Multiple Choice

Use the following to answer question:
-(Figure: Tax Incidence) Use Figure: Tax Incidence.All other things unchanged,when a good or service is characterized by a relatively inelastic demand,as shown in panel _____,the greater share of the burden of an excise tax on it is borne by _____.

• A)C;buyers
• B)C;sellers
• C)D;sellers
• D)D;buyers

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Definitions:

Nicotine

A stimulant and addictive substance found in tobacco, which affects the nervous system when consumed.

Addictive

Characterized by a compulsive need to engage in a particular activity or consume a substance, leading to significant physiological or psychological dependence.

Marijuana

A plant-based substance containing psychoactive chemicals, commonly used for its relaxing and euphoric effects.

Prevention

Actions taken to stop something harmful from happening, or to reduce risks or dangers before they occur.