Suppose the Cost of Breaking the Law Is Imposed on the Sellers

question 112

Multiple Choice

Suppose the cost of breaking the law is imposed on the sellers of an illegal good.This action will have its biggest impact on quantity if the demand for the good is

• A)inelastic or the supply is inelastic.
• B)elastic or the supply is elastic.
• C)elastic or the supply is inelastic.
• D)inelastic or the supply is elastic.
• E)perfectly inelastic.

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Definitions:

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Government of Canada and for most provinces and territories.

Delinquent Tax Liabilities

are tax obligations that have not been paid by the deadline, resulting in overdue taxes owed to the government.

Tax Authority

The governmental organization responsible for enforcing tax laws and collecting taxes.

Cash Flow

This represents the total amount of money being transferred in and out of a business, especially in terms of operational, investment, and financing activities.