All Else Equal,if Demand Is Relatively Elastic and Supply Is

question 58

Multiple Choice

All else equal,if demand is relatively elastic and supply is relatively inelastic,a tax on a product will cause

• A) buyers to bear a larger portion of the tax burden.
• B) sellers to bear a larger portion of the tax burden.
• C) buyers and sellers to share the tax burden equally.
• D) It is impossible to tell from this information who will bear the greater tax burden.

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Definitions:

Calculate

To ascertain by computation; determine by mathematical means.

Economic Value

The worth of a good or service determined by the market, reflecting its utility, scarcity, and consumers' willingness to pay.

Equivalent

Equal in value, measure, force, effect, significance, etc.

Missing Value

A term used in statistics and data analysis to denote a data point that is not recorded or is unknown.