Use the Following to Answer Question(s): Tax Incidence

question 20

Multiple Choice

Use the following to answer question(s) : Tax Incidence

-(Exhibit: Tax Incidence) All other things unchanged, when a good or service is characterized by a relatively elastic supply, as shown in Panel _______ , the greater share of the burden of an excise tax imposed on it (shown by the tax wedge in each panel) is borne by _______.

• A) (a); buyers
• B) (b); sellers
• C) (b); buyers
• D) (a); sellers