If the Demand for Insulin Is Highly Inelastic, the Burden

question 57

True/False

If the demand for Insulin is highly inelastic, the burden of a tax on Insulin will be borne almost entirely by sellers.

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Definitions:

Federal Insurance Contributions Act

A U.S. law that mandates a payroll tax on the paychecks of employees, as well as contributions from employers, to fund the Social Security and Medicare programs.

Cumulative Gross Earnings

The total gross income earned by an individual or entity before any deductions over a given period.

State Tax Rate

The percentage at which individuals or businesses within a state are taxed by the state government.

FICA

The Federal Insurance Contributions Act; a U.S. law that requires a deduction from paychecks to fund Social Security and Medicare benefits.