When Demand for a Product Is Very Inelastic, the Burden

question 217

Multiple Choice

When demand for a product is very inelastic, the burden of a tax falls mainly on

• A)producers.
• B)consumers.
• C)tax collectors.
• D)people who drop out of the market.

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Definitions:

Parasympathetic Division

A branch of the autonomic nervous system responsible for conserving energy and slowing down the body's responses.

Autonomic Nervous System

A part of the nervous system that controls involuntary functions of the body, such as heart rate, digestion, and respiratory rate.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, associated with higher cognitive processes such as reasoning, planning, parts of speech, movement, emotions, and problem solving.

Parietal Lobe

An area in the cerebral cortex responsible for processing sensory data related to the positioning of body parts, as well as analyzing visual information and managing language and mathematical operations.