Which of the Following Is a Correct Statement About Tax

question 98

Multiple Choice

Which of the following is a correct statement about tax burdens?

• A) A tax burden is distributed independently of relative elasticities of supply and demand.
• B) A tax burden falls most heavily on the side of the market that is closer to unit elastic.
• C) A tax burden falls most heavily on the side of the market that is less elastic.
• D) A tax burden falls most heavily on the side of the market that is more elastic.

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