When a Good with Equally Elastic Demand and Supply Is

question 165

Multiple Choice

When a good with equally elastic demand and supply is taxed,the incidence of the tax is borne

• A) entirely by consumers.
• B) entirely by producers.
• C) by both consumers and producers.
• D) mostly by consumers.
• E) mostly by producers.

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Definitions:

Capital Structure

The mix of debt and equity financing used by a company to fund its operations and growth.

Return on Equity Ratio

A financial ratio that measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Financial Statements

Formal records of the financial activities and condition of a business, entity, or individual, including balance sheet, income statement, and cash flow statement.

ROA

Return on Assets, a financial ratio that indicates how profitable a company is relative to its total assets, measuring how efficient management is in using assets to generate earnings.