If a Tax Is Imposed on a Market with Inelastic

question 143

Multiple Choice

If a tax is imposed on a market with inelastic demand and elastic supply,then

• A)buyers will bear most of the burden of the tax.
• B)sellers will bear most of the burden of the tax.
• C)the burden of the tax will be shared equally between buyers and sellers.
• D)it is impossible to determine how the burden of the tax will be shared.

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Definitions:

Optimism

A mental attitude reflecting a belief or hope that the outcome of some specific endeavor, or outcomes in general, will be positive, favorable, and desirable.

Self-Efficacy

The belief in one's own ability to succeed in specific situations or accomplish a task, influencing how goals, tasks, and challenges are approached.

High Self-Efficacy

Refers to an individual's belief in their capability to execute behaviors necessary to produce specific performance attainments.

Control Over the Situation

The extent to which an individual can influence the conditions or outcomes of a given scenario.