Suppose That a Tax Is Placed on a Particular Good

question 34

Multiple Choice

Suppose that a tax is placed on a particular good. If the sellers end up bearing most of the tax burden, this indicates that the

• A) demand is more inelastic than supply.
• B) supply is more inelastic than demand.
• C) government has required that buyers remit the tax payments.
• D) government has required that sellers remit the tax payments.

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Definitions:

Business Model

The method by which a company generates revenue to sustain itself.

Exclusive Lines

Products or services available for sale only through specific channels or retailers, often to maintain quality or brand prestige.

Transparent Pricing

A pricing strategy where businesses clearly communicate price components and the cost of production to customers, fostering trust and understanding.

Business Model

A strategic plan outlining how a company creates, delivers, and captures value, in economic, social, cultural, or other contexts.