Suppose That a Tax Is Placed on Theatre Tickets

question 34

Multiple Choice

Suppose that a tax is placed on theatre tickets.If the seller ends up paying the majority of the tax,what do we know

• A)The demand curve is more inelastic than the supply curve.
• B)The supply curve is more inelastic than the demand curve.
• C)The government has placed the tax on the seller.
• D)The government has placed the tax on the buyer.

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Definitions:

Units

Basic measures of quantity or amount in specific contexts, such as inventory units in manufacturing or business.

Medical Supplies

Items used in the medical field for treatment, diagnosis, or preventive care, including bandages, syringes, and diagnostic kits.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.

Client-Visits

The act of visiting clients either for business development, maintaining relationships, or providing support and services.