If the Quantity Demanded Is Relatively Sensitive to Changes in Price

question 1

Multiple Choice

If the quantity demanded is relatively sensitive to changes in price and the quantity supplied is relatively insensitive to changes in price,the imposition of a sales tax will

• A) shift entirely to the buyer.
• B) fall more heavily on the buyer.
• C) be equally shared by the buyer and seller.
• D) fall more heavily on the seller.
• E) shift entirely to the seller.

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Definitions:

Asset

An economic resource owned or controlled by an individual or entity that is expected to produce future benefits.

Service Revenue

Income earned by a company for the services it has provided to its customers.

Bank Loan Payable

Bank Loan Payable is the amount owed by a borrower to a bank, typically represented as a liability on the borrower's balance sheet.