Suppose That a Market Is Initially in Equilibrium,then a Per-Unit

question 57

Multiple Choice

Suppose that a market is initially in equilibrium,then a per-unit tax is imposed on sellers.The more inelastic demand is,the ______ the burden of the tax borne by ______.

• A) smaller;consumers
• B) larger;producers
• C) larger;consumers and producers
• D) smaller;consumers and producers
• E) smaller;producers

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Definitions:

Month-end Postings

The journal entries made at the end of the month to record all transactions and adjustments for that month.

Financial Year

A period of twelve months used for accounting purposes and the preparation of financial statements, not necessarily aligning with the calendar year.

Cash Receipts Journal

A specialized accounting journal used to record all money that is received by a business.

Cash Sale

A transaction where payment for a good or service is made at the time of the sale, usually in the form of cash or equivalent.