If the Demand Curve Is Less Elastic Than the Supply

question 117

Multiple Choice

If the demand curve is less elastic than the supply curve,then:

• A) the buyers will bear a greater tax incidence.
• B) the sellers will bear a greater tax incidence.
• C) the buyers will bear a smaller tax burden than sellers.
• D) the sellers will bear a greater tax burden than buyers.

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Definitions:

Salary Allowances

Additional monetary benefits provided to employees on top of their regular salary, potentially for specific purposes or expenses.

Capital Account

An account on a country's balance of payments that records transactions involving the purchase and sale of assets, representing changes in ownership of international assets.

Partnership Agreement

A contract between partners in a business that outlines the terms of the partnership, roles, and share of profits or losses.

Profits and Losses

Profits and losses correspond to the financial gains or losses generated by a company's operations over a specific period, reflecting its economic performance.