If a Tax Is Imposed on a Good Where Both

question 40

Multiple Choice

If a tax is imposed on a good where both supply and demand are somewhat elastic,but demand is more elastic than supply,the burden of the tax will be borne

• A) by consumers and producers equally.
• B) by consumers alone.
• C) by producers alone.
• D) mostly by consumers but partially by producers.
• E) mostly by producers but partially by consumers.

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Definitions:

Purchase Price

The amount paid to buy an asset or service, which can include the acquisition of goods, services, or property.

Selling Price

The amount of money for which a product or service is offered for sale to customers.

Standard Deviation

A statistical measure that represents the dispersion or variability of a set of data points or investment returns.

Returns

The profit or loss generated on an investment over a specified period, usually expressed as a percentage of the investment's initial cost.