When a Tax Is Imposed on the Suppliers of a Good

question 91

Multiple Choice

When a tax is imposed on the suppliers of a good or service, then

• A) in general, the producers pay all the tax.
• B) in general, the consumers pay all the tax.
• C) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes smaller.
• D) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes larger.

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Definitions:

Computer Analogy

The computer analogy in psychology refers to comparing the human mind and its processing of information to the way a computer operates, including input, processing, and output functions.

Automatization

The process of making an action or procedure automatic through repetition or practice.

Retrieval

The process of recalling or accessing information or memories that have been previously stored in the brain.

Abstract Components

Non-concrete, intangible elements or aspects of something, often relating to ideas or concepts rather than physical traits.