The Burden of a Tax Will Fall Primarily on Sellers

question 146

Multiple Choice

The burden of a tax will fall primarily on sellers when the

• A) demand for the product is highly inelastic and the supply is relatively elastic.
• B) demand for the product is highly elastic and the supply is relatively inelastic.
• C) tax is legally (statutorily) imposed on the seller of the product.
• D) tax is legally (statutorily) imposed on the buyer of the product.

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Definitions:

Distal Tubule

A portion of kidney nephron between the loop of Henle and collecting duct system that plays a crucial role in the reabsorption of water, sodium, and calcium and in the secretion of potassium and hydrogen ions.

Ureter

One of two tubes that carries urine from a kidney to the bladder.

Bowman's Capsule

A cup-like sac at the beginning of the tubular component of a nephron in the kidney, which encases the glomerulus and is involved in the filtration of blood.

Ammonia

A colorless gas with a penetrating odor, NH3, which is a byproduct of nitrogenous waste in organisms and used in various industrial processes.