If Sellers Bear a Smaller Tax Burden Than Buyers in a Market

question 156

Multiple Choice

If sellers bear a smaller tax burden than buyers in a market, which of the following must be true?

• A) It must be a market for inferior goods.
• B) It must be a market for luxury items.
• C) The supply curve must be more elastic than the demand curve.
• D) The supply curve must be less elastic than the buyers demand curve.

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