When the Demand for a Product Is Less Elastic Than

question 207

Multiple Choice

When the demand for a product is less elastic than the supply,

• A)consumers pay the majority of the tax on the product.
• B)firms pay the majority of the tax on the product.
• C)firms pay the entire tax on the product.
• D)consumers pay the entire tax on the product.

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Definitions:

New Netherland

A 17th-century colonial province of the Dutch Republic that encompassed parts of modern Northeastern United States, including New York, New Jersey, and Delaware.

Legal Identity

The lawfully recognized personality under which an individual or entity has rights, duties, and is subject to legal actions.

Indentured Servants

Individuals who agreed to work for a certain number of years in exchange for passage to the New World and eventual freedom; a common practice in the American colonies.

Fur Trade

The buying and selling of animal pelts (especially those of beavers, which were highly valued) primarily carried out by European settlers and Indigenous peoples in North America from the 16th to 19th centuries.