If the Quantity Demanded Is Relatively Insensitive to Changes in Price

question 19

Multiple Choice

If the quantity demanded is relatively insensitive to changes in price and the quantity supplied is relatively sensitive 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:

Personal Selling

A face-to-face sales technique where a seller aims to persuade a buyer to purchase a product or service, focusing on customer needs and relationship building.

Financial Remuneration

Monetary compensation or payment received for services or employment.

Exchange

The act of trading goods, services, or currencies between parties.

Neuralink

A neurotechnology company focused on developing brain-computer interface technologies.