The Burden of a Specific Sales Tax Falls Entirely on the Consumer

question 22

Multiple Choice

The burden of a specific sales tax falls entirely on the consumer when the

• A) elasticity of supply is zero.
• B) demand curve is perfectly elastic.
• C) price elasticity of demand is greater than the elasticity of supply.
• D) price elasticity of demand is zero.

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Definitions:

Superior Trial Court

A higher-level court that handles significant civil and criminal cases, often with the authority to review decisions from lower courts.

Limitations

Restrictions or bounds that limit the extent, scope, or applicability of something.

Action Started

The initiation of legal proceedings in a court of law.

Small Claims Courts

Judicial courts that handle minor civil disputes involving small financial amounts, intended for quick and less formal resolutions.