All Else Equal,if Demand Is Relatively Elastic and Supply Is

question 58

Multiple Choice

All else equal,if demand is relatively elastic and supply is relatively inelastic,a tax on a product will cause

• A) buyers to bear a larger portion of the tax burden.
• B) sellers to bear a larger portion of the tax burden.
• C) buyers and sellers to share the tax burden equally.
• D) It is impossible to tell from this information who will bear the greater tax burden.

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Definitions:

Hot Waters

Water that has been heated by geological processes, often found in geothermal springs or near volcanic areas, and can contain minerals and sustain unique ecosystems.

Granite

A coarse-grained igneous rock composed mainly of quartz, feldspar, and mica, commonly found in the continental crust.

Coal Deposits

Accumulations of coal material in the Earth's crust, typically originating from plant matter compacted over millions of years.

Sedimentary Rocks

Layers of rock formed by the accumulation and consolidation of sediment, typically found on the Earth's surface.