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

question 165

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 demand, 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) (d); buyers
• B) (d); sellers
• C) (c); sellers
• D) (c); buyers

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Definitions:

Posterior Cavity

A body cavity located towards the back of the human body, housing the brain and spinal cord within its cranial and spinal subdivisions.

Conjunctiva

The thin, transparent membrane lining the inner surface of the eyelid and covering the white part of the eyeball.

Mucous Membrane

A layer of epithelial cells that produce mucus, lining various cavities and tubes in the body to protect against infection.

Anterior Surface

The front or forward-facing surface of an organ, structure, or body, positioned toward the front of the body.