If a Tax Is Imposed on a Good Where Both

question 159

Multiple Choice

If a tax is imposed on a good where both supply and demand are somewhat elastic,but supply is more elastic than demand,the burden of the tax will be borne

• A) by consumers and producers equally.
• B) by consumers alone.
• C) by producers alone.
• D) mostly by consumers but partially by producers.
• E) mostly by producers but partially by consumers.

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Definitions:

Sampling

The process of selecting a subset of individuals, objects, or observations from a larger population to make inferences about the whole.

Observational Studies

Research methods in which subjects are observed in their natural environment without any intervention by the researcher.

Reactivity

The tendency of a person to alter their behavior or response due to the awareness of being observed or measured.

Directionality Problem

An issue that arises when it is unclear whether one variable causes changes in another or vice versa, complicating the interpretation of study results.