If a Tax Is Imposed on a Market with Elastic

question 24

Multiple Choice

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

• 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) there is no way to determine how the burden of the tax will be shared.

---

Definitions:

Legal Relationship

A connection between entities or individuals as defined by law, which can encompass duties, rights, or liabilities recognized by legal statutes or court rulings.

Revoking

The act of officially canceling or withdrawing a right, privilege, or the legal force of an agreement or law.

Contract Performance

The act of carrying out the terms and conditions as specified in a contract by the involved parties.

Letter Of Acceptance

A Letter of Acceptance is a formal document indicating that an offer has been understood and agreed upon, thereby forming a binding contract.