With Regard to Tax Burdens, What Does the ―Elasticity =

question 81

Multiple Choice

With regard to tax burdens, what does the ―elasticity = escape‖idea tell you?

• A)that the curve (between demand and supply) that is relatively more elastic will bear less of the tax burden (True Answer
• )Correct
• B)that the curve (between demand and supply) that is relatively more inelastic will bear less of the tax burden
• C)that the curve (between demand and supply) that is relatively more elastic will escape the tax burden entirely
• D)that the ratio of the buyers' tax burden to the sellers' tax burden is always greater than 1

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