A Tax Is Imposed on a Market with an Inelastic

question 74

Multiple Choice

A tax is imposed on a market with an inelastic demand and an elastic supply.How is the burden of the tax divided

• A)sellers pay the majority of the tax
• B)buyers pay the majority of the tax
• C)the tax burden is equally divided between buyers and sellers
• D)the tax burden is divided, but it cannot be determined how

---

Definitions:

Valence

in psychology, refers to the intrinsic attractiveness (positive valence) or averseness (negative valence) of an event, object, or situation.

Importance

The quality of being significant or valuable in a particular context or to a particular individual or group.

Social Learning Theory

A theory that suggests that people can learn new behaviors and attitudes through observing the actions of others and the outcomes of those actions.

Conscious-Unconscious

Refers to the distinction between mental processes and contents that are within an individual's awareness and those that are not.