When Demand for a Product Is Very Inelastic, the Burden

question 217

Multiple Choice

When demand for a product is very inelastic, the burden of a tax falls mainly on

• A)producers.
• B)consumers.
• C)tax collectors.
• D)people who drop out of the market.

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Definitions:

Mediastinum

The central compartment of the thoracic cavity, surrounded by loose connective tissue, that contains the heart, trachea, esophagus, and other structures.

Diaphragm

A large, dome-shaped muscle at the base of the lungs that plays a critical role in breathing.

Celiac Trunk

A major artery that supplies the abdominal organs including the liver, stomach, and spleen with blood.

Superior Mesenteric Artery

A major artery that supplies blood to a large portion of the lower intestine, including the jejunum, ileum, and colon.