Which of the Following Generalizations Is Correct

question 55

Multiple Choice

Which of the following generalizations is correct?

• A)The more elastic the demand and supply of a product, the larger the portion of an excise tax which is borne by buyers.
• B)The more elastic the demand for a product, the larger the portion of an excise tax which is borne by buyers.
• C)The more inelastic the supply of a product, the larger the portion of an excise tax which is borne by buyers.
• D)The more inelastic the demand for a product, the larger the portion of an excise tax which is borne by sellers.
• E)The more elastic the supply of a product, the larger the portion of an excise tax which is borne by buyers.

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Definitions:

Standard Price

A predetermined cost of a resource or product, used for budgeting and cost control purposes.

Standard Quantity

A predetermined amount of input that should be used in producing a unit of output.

Standard Costs

Predetermined costs for manufacturing a product or service, used as a benchmark to measure the actual costs of production.

Product Specifications

Detailed descriptions of a product's characteristics, materials, and performance criteria, setting the standards for production and quality.