Those with More Inelastic Demands Will Bear a Larger Burden

question 37

Multiple Choice

Those with more inelastic demands will bear a larger burden of a tax because they:

• A) have more buying power.
• B) have more income.
• C) will switch to other products with a tax.
• D) have fewer substitutes for that good.

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Definitions:

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds.

Marginal Probability Distribution

The probability distribution of a subset of variables within a larger set, ignoring the presence or values of other variables.

Mobile Phone Store

A retail outlet specializing in selling mobile phones and related accessories.

Standard Error

A statistic that measures the dispersion or variability of a sample statistic from the population parameter, used to infer the precision of the sample mean.