If Demand Is Elastic, the Tax Incidence Falls More Heavily

question 382

Multiple Choice

If demand is elastic, the tax incidence falls more heavily on the _____, and deadweight loss is relatively _____.

• A) buyer; large
• B) buyer; small
• C) seller; large
• D) seller; small

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Definitions:

Fovea

A tiny indent in the eye's retina where vision is the sharpest.

Macula Lutea

A small, yellowish central area of the retina that is rich in cones and where visual acuity (sharpness) is highest.

Optic Disk

The point in the eye where the optic nerve enters the retina, often referred to as the blind spot since it lacks photoreceptors.

Negative Employment Message

Communication from an employer that conveys unfavorable job-related information, such as a rejection notice or a notice of termination.