The Seller Pays Most of a Tax If Demand Is

question 33

Multiple Choice

The seller pays most of a tax if demand is relatively elastic because

• A)the buyer can easily substitute to other markets.
• B)the seller can easily substitute to other markets.
• C)the government forces the seller to bear the burden of the tax.
• D)there is a black market for this good.
• E)the seller cannot easily substitute to other goods.

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Definitions:

Amalgamation

The process of combining two or more companies into a single entity, often to achieve operational efficiencies or strategic objectives.

Merger

The merging of two or more corporations into a single entity, where one company is entirely taken over by another.

Acquisition

The process by which one company purchases most or all of another company's shares to take control.

Synergy

The belief that the combined strength and efficiency of two unified companies will exceed the total of their individual contributions.