If a $10 Sales Tax Is Imposed on a Good

question 159

Multiple Choice

If a $10 sales tax is imposed on a good and the equilibrium price increases by $10,the tax is

• A) split between buyers and sellers but not evenly.
• B) paid fully by sellers.
• C) paid fully by buyers.
• D) split evenly between buyers and sellers.
• E) perhaps split between buyers and sellers but it is impossible to determine the incidence without further information.

Explain the role of financial analysis and employee perspectives in shaping contract proposals.

Understand the strategic calculation of resistance points, target settlements, and their implications for bargaining outcomes.

Grasp the long-term impact of bargaining strategies on employer-employee-union relationships.

Differentiate between types of bargaining issues and their classification as zero-sum or constant-sum games.