Other Things Being Equal, the Burden of a Sales Tax

question 230

Multiple Choice

Other things being equal, the burden of a sales tax on a product will be borne entirely by the producer if

• A) demand is perfectly elastic.
• B) supply is perfectly elastic.
• C) supply and demand have the same price elasticity.
• D) demand is perfectly inelastic.

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Definitions:

Scientific Analysis

The application of systematic, methodical approaches to investigate phenomena, acquire new knowledge, or correct and integrate previous knowledge.

Creative

Showing the ability or power to create through imagination or inventiveness.

Lewin's Field Theory

A psychological theory proposed by Kurt Lewin, positing that human behavior is determined by the dynamic interactions between personal and environmental factors, represented as a "field."

Initiations

The process of beginning something, such as a new project, relationship, or phase.