If the Demand Curve Is More Elastic Than the Supply

question 61

Multiple Choice

If the demand curve is more elastic than the supply curve in a market that is taxed, then:

• A) buyers will bear a greater tax burden than sellers.
• B) sellers will bear a greater tax burden than buyers.
• C) the tax burden will be shared equally by buyers and sellers.
• D) None of these are correct.

---

Definitions:

Machine-Hours

A measure of production output or activity based on the number of hours machines are operating in the manufacturing process.

Machining

The process of removing material from a workpiece to shape or finish it using machine tools.

Manufacturing Overhead

All indirect costs associated with the production process, excluding direct material and direct labor costs.

Predetermined Overhead Rate

A rate established in advance to allocate overhead costs to products or services based on a specific activity base.