When a Tax Is Imposed on a Good for Which

question 50

Multiple Choice

When a tax is imposed on a good for which both demand and supply are very elastic,

• A)sellers effectively pay the majority of the tax.
• B)buyers effectively pay the majority of the tax.
• C)the tax burden is equally divided between buyers and sellers.
• D)None of the above is correct;further information would be required to determine how the burden of the tax is distributed between buyers and sellers.

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Definitions:

Ventricle

A chamber of the heart or brain, in the heart it is one of two large chambers that collect and expel blood, in the brain it produces and circulates cerebrospinal fluid.

Atrium

A central room or space in a building, often open to the sky.

Arteriosclerosis

The thickening, hardening, and loss of elasticity of the walls of arteries, often leading to restricted blood flow which can result in cardiovascular issues.

Bruit

A sound, usually abnormal, heard in auscultation that indicates the presence of turbulent flow within a blood vessel.