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:

Sample Means

The average value of a set of samples from a population.

Freshmen

First-year students at a high school, college, or university.

Simple Random Sample

A sample in which each member of the population has an equal chance of being selected, ensuring that the sample accurately reflects the population from which it is drawn.

Probability

The quantification of the probability of an event happening, represented by a numerical value ranging from 0 to 1.