The More Elastic the Supply of a Product, the More

question 94

Multiple Choice

The more elastic the supply of a product, the more likely it is that the

• A) burden of a tax on the product will fall on sellers.
• B) burden of a tax on the product will fall on buyers.
• C) burden of a tax on the product will fall equally on both buyers and sellers.
• D) deadweight loss of the tax will be smaller.

---

Definitions:

Plausibility

The quality of seeming reasonable or probable, often used to describe theories, arguments, or scenarios that are believable based on evidence or logic.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theories on free market economics presented in "The Wealth of Nations."

Individuals

Single human beings considered separate from a group or society.

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services in an economy.