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:

Records Of Partnership

Documentation that details the agreements, contributions, profits, losses, and other essential information pertaining to the operation and governance of a partnership.

Articles Of Partnership

A legal document that outlines the rights, responsibilities, and obligations of each partner in a business partnership.

Voting Rights

The entitlements of individuals to participate in the election of their representatives and on other matters through the act of voting.

Management Rights

The authority and powers held by managers and employers to make decisions about operating their businesses.