The Demand for a Good and the Supply of a Good

question 74

Multiple Choice

The demand for a good and the supply of a good are each neither perfectly elastic nor perfectly inelastic.If a sales tax on sellers of the good is imposed,the tax is paid by

• A)the buyers only.
• B)both the buyers and the sellers.
• C)the sellers only.
• D)the buyers only if demand for the good increases.
• E)the suppliers only if the supply of the good increases.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenues.

Next Period

Refers to the subsequent accounting period or time frame following the current one.

Retail Method

An inventory estimation technique used in retail, which calculates the ending inventory balance using the cost-to-retail price ratio.

Estimated Inventory

An approximate calculation of a company's inventory, used when an exact count is not feasible and typically utilized in a periodic inventory system.