If the Supply Curve Is More Inelastic Than the Demand

question 127

Multiple Choice

If the supply curve is more inelastic than the demand curve,then:

• A) the sellers will bear a greater tax incidence than the buyers.
• B) the sellers will bear a smaller tax incidence than the buyers.
• C) the sellers will bear an equal tax incidence as the buyers.
• D) Any of these could be true.

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Definitions:

Convergent Boundary

A tectonic plate boundary where two plates move toward one another, often resulting in mountain building, earthquakes, and volcanic activity.

Volcanism

The geological process through which magma and associated gases and ashes are expelled onto the Earth's surface or into the atmosphere.

Sinkholes

Natural depressions or holes in the Earth's surface caused by the removal of soil and bedrock, often due to water erosion.

Methane Gas

A colorless, odorless flammable gas that is a major component of natural gas, potent greenhouse gas contributing to global warming.