Suppose the Demand Curve for a Good Is Highly Elastic

question 33

Multiple Choice

Suppose the demand curve for a good is highly elastic and the supply curve is highly inelastic. If the government taxes this good,

• A) buyers and sellers will each share 50 percent of the burden, regardless of the elasticities of the demand and supply curves.
• B) sellers will bear a larger share of the tax burden.
• C) the distribution of the burden will depend upon whether the buyers or the sellers are required to send the tax to the government.
• D) buyers will bear a larger share of the tax burden.

---

Definitions:

Short-Term Attraction

Relates to the initial phase of feeling drawn towards someone, which is often fleeting and based on superficial attributes.

Conflict Dissonance

The psychological tension or discomfort arising from inconsistencies within one's beliefs, attitudes, or behaviors during a conflict.

Conflict Trigger

A common perceived cause of interpersonal conflict.