If a $5,000 Tax Is Placed Legally (Statutorily) on the Sellers

question 278

Multiple Choice

If a $5,000 tax is placed legally (statutorily) on the sellers of new automobiles and as a result the price of automobiles to consumers rises by $4,000, then the actual burden of the tax

• A) falls completely on automobile buyers.
• B) falls completely on automobile sellers.
• C) is $4,000 on automobile buyers and $1,000 on sellers.
• D) is $1,000 on automobile buyers and $4,000 on sellers.

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Definitions:

Freckles

Small, pigmented spots on the skin, typically appearing as a result of exposure to sunlight and predominantly seen in people with lighter skin.

Diameter

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, representing the longest distance across it.

Friction Ridges

The raised portions of the epidermis on the fingers and thumbs, palms, soles, and toes, creating distinctive patterns used for identification in forensic analysis.

Reticular Layer

The deeper layer of the dermis in the skin, consisting of dense irregular connective tissue that provides strength and elasticity.