Consumers Will Pay the Full Tax That Is Placed on the Sellers

question 20

Multiple Choice

Consumers will pay the full tax that is placed on the sellers of a good if demand is __________ or supply is __________.

• A)perfectly inelastic; perfectly inelastic
• B)elastic; inelastic
• C)perfectly inelastic; unit elastic
• D)perfectly elastic; perfectly inelastic
• E)perfectly inelastic; perfectly elastic

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Definitions:

Issuing Bonds

The process by which corporations or governments raise capital by selling debt securities, promising to repay the principal amount with interest at a later date.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, typically noted on an annual basis.

Futures Contracts

Agreements to buy or sell an asset at a predetermined future date and price.

Spot Price

The present market rate at which a specific asset like a commodity, currency, or security is available for purchase or sale with immediate delivery.