The More Inelastic the Demand for a Product, the More

question 5

Multiple Choice

The more inelastic the demand for a product, the more the actual burden of a tax on the product will:

• A) fall on sellers.
• B) fall on buyers.
• C) fall equally on both buyers and sellers.
• D) create a larger deadweight loss (or excess burden).

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Definitions:

Distribution Of Scores

A representation, often in graphical form, showing how frequently different scores appear in a set of data.

Arithmetic Average

The central value of a set of numbers, calculated by dividing the sum of all the numbers by the count of those numbers.

Arithmetic Average

The sum of a collection of numbers divided by the count of numbers in the collection, commonly known as the mean.

Extreme Cases

Situations or examples that are highly unusual or atypical, often used to test the limits of theories or understanding.