Which of the Following Statements Is Correct

question 52

Multiple Choice

Which of the following statements is correct?

• A)A tax levied on buyers will never be partially paid by sellers.
• B)Who actually pays a tax depends on the price elasticities of supply and demand.
• C)Government can decide who actually pays a tax.
• D)A tax levied on sellers always will be passed on completely to buyers.

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Definitions:

Cost-plus Pricing Strategy

A pricing method where a fixed percentage or amount is added to the total cost of producing a product or service to determine its selling price.

Fixed Margin

A set profit margin that does not vary with sales volume or production costs.

Domestic Market

The marketplace of goods and services offered within a country's borders, as opposed to international markets.

Beverage Company

A company that specializes in the production and distribution of drinks, including both alcoholic and non-alcoholic beverages.