If the Supply Curve Is More Inelastic Than the Demand

question 44

Multiple Choice

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

• A) sellers will bear a greater tax burden than buyers.
• B) sellers will bear a smaller tax burden than buyers.
• C) the tax burden will be shared equally by buyers and sellers.
• D) All of these could be correct.

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Definitions:

Fraud

Wrongful or criminal deception intended to result in financial or personal gain.

Company Assets

Resources owned by a company that have economic value and can be used to meet debts, commitments, or investments.

Personal Gain

The benefit or advantage acquired by an individual from a particular scenario or transaction, often financial in nature.

Internal Control

A process designed to ensure the reliability of financial reporting, effectiveness of operations, and compliance with laws and regulations.