Producers Will Bear a Larger Burden of a Sales Tax

question 152

Multiple Choice

Producers will bear a larger burden of a sales tax if

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

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Definitions:

Neuron

A specialized cell transmitting nerve impulses; the basic building block of the nervous system.

Lateralized

Refers to the tendency for some neural functions or cognitive processes to be more dominant in one hemisphere of the brain than the other.

Amygdala

A part of the brain involved in emotion regulation, especially fear and pleasure responses, as well as memory processing.

Asymmetry

Lack of equality or equivalence between parts or aspects of something; lack of symmetry.