When Demand for a Product Is Very Inelastic, the Burden

question 217

Multiple Choice

When demand for a product is very inelastic, the burden of a tax falls mainly on

• A)producers.
• B)consumers.
• C)tax collectors.
• D)people who drop out of the market.

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Definitions:

Threatened

A feeling or condition of being under potential harm or danger, either physically, emotionally, or psychologically.

Bystander Effect

The tendency for bystanders in an emergency to help less often and less quickly as the number of bystanders present increases.

Explanations

Statements or accounts that make something clear, helping to understand the reasons or causes behind events or behaviors.

Negative-State Relief

A hypothesis suggesting individuals help others to alleviate their own negative moods or feelings.