Consumers Will Bear a Larger Burden of an Excise Tax

question 32

Multiple Choice

Consumers will bear a larger burden of an excise tax if

• A)both demand and supply are relatively inelastic.
• B)the tax is collected by firms rather than remitted directly to the government by consumers.
• C)both demand and supply are relatively elastic.
• D)demand is relatively elastic and supply is relatively inelastic.
• E)demand is relatively inelastic and supply is relatively elastic.

---

Definitions:

Tailor Products

To customize or modify products to meet specific customer requirements or preferences, enhancing satisfaction and competitive advantage.

Global Company

A business entity that operates in multiple countries around the world, transcending national borders.

Differentiate Marketing

Marketing strategies that highlight the unique aspects of a product or service to distinguish it from competitors in the market.

Global Marketing Strategy

The way in which a firm decides which market segments to operate in, how it will position its offerings, and to what extent products and services will be standardized or differentiated in each market.