Suppose That in a Particular Market,the Demand Curve Is Highly

question 88

Multiple Choice

Suppose that in a particular market,the demand curve is highly elastic,and the supply curve is highly inelastic.If a tax is imposed in this market,then the

• A)buyers will bear a greater burden of the tax than the sellers.
• B)sellers will bear a greater burden of the tax than the buyers.
• C)buyers and sellers are likely to share the burden of the tax equally.
• D)buyers and sellers will not share the burden equally,but it is impossible to determine who will bear the greater burden of the tax without more information.

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Definitions:

Trade Name

A business's official name under which it operates and is known to the public, distinct from its legal registered name.

Sole Proprietor

An individual who owns and operates a business alone, without forming a corporation or partnership, bearing unlimited liability.

Personal Income Taxes

Taxes levied by governments on individuals or households based on their total income from all sources.

Business Income Taxes

Taxes levied on the earnings of companies and businesses, calculated based on the net income or profit of the entity.