Consumers with More Elastic Demand Bear a Smaller Burden of a Tax

question 100

Multiple Choice

Consumers with more elastic demand bear a smaller burden of a tax because they

• A) have more buying power.
• B) have less market power.
• C) switch to other products when a tax is imposed.
• D) have fewer substitutes for that good.
• E) produce the taxed good themselves.

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Definitions:

Employee Discrimination

Unfair treatment of employees based on race, gender, age, religion, disability, or any other characteristic, rather than their merits or abilities.

Company Favouritism

The practice of giving unfair preferential treatment to one's own company or specific employees within it.

Class Structure

The organization of society into hierarchical layers based on socio-economic status, wealth, or occupation.

Income Distribution

The way in which total income is shared among the members of a society.