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question 126

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Use the following to answer questions:
Figure: Tax Incidence Use the following to answer questions: Figure: Tax Incidence   -(Figure: Tax Incidence)  Look at the figure Tax Incidence. All other things unchanged, when a good or service is characterized by a relatively inelastic demand, as shown in panel _____, the greater share of the burden of an excise tax on it is borne by _____. A)  C; buyers B)  C; sellers C)  D; sellers D)  D; buyers
-(Figure: Tax Incidence) Look at the figure Tax Incidence. All other things unchanged, when a good or service is characterized by a relatively inelastic demand, as shown in panel _____, the greater share of the burden of an excise tax on it is borne by _____.


Definitions:

Remodel

To change the structure, shape, or appearance of something, especially buildings, rooms, or designs.

Earning Money

Refers to receiving payment for work done or through investments.

Saving

The act of setting aside money for future use, either by depositing it in a bank or investing it.

Indirect Benefits

Advantages or improvements that are not directly observable or immediate but occur as a consequence of an action.

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