If a Tax Is Imposed on a Market with Inelastic

question 143

Multiple Choice

If a tax is imposed on a market with inelastic demand and elastic supply,then

• A)buyers will bear most of the burden of the tax.
• B)sellers will bear most of the burden of the tax.
• C)the burden of the tax will be shared equally between buyers and sellers.
• D)it is impossible to determine how the burden of the tax will be shared.

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Definitions:

Environmental Protection Agency

A U.S. federal agency responsible for the regulation and enforcement of laws aimed at protecting human health and the environment.

Elevated Radon Levels

Refers to higher concentrations of radon gas in the atmosphere or in buildings, which is hazardous to health due to its radioactive properties.

Radioactive Isotopes

Atoms of the same element that have different numbers of neutrons and exhibit radioactivity by emitting radiation.

Belt of Stability

A graphical representation showing stable isotopes of elements; isotopes within the belt are more stable against radioactive decay.