When a Tax Is Imposed on a Good for Which

question 14

Multiple Choice

When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic,

• A)buyers of the good will bear most of the burden of the tax.
• B)sellers of the good will bear most of the burden of the tax.
• C)buyers and sellers will each bear 50 percent of the burden of the tax.
• D)both equilibrium price and quantity will increase.

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Definitions:

Marketing Strategies

Marketing strategies are comprehensive plans formulated to achieve specific marketing goals, such as increasing brand awareness, attracting new customers, or boosting sales.

Target Market

The specific group of consumers at whom a company aims its products and services.

Time Schedule

An organized plan specifying when tasks or events are expected to take place.

Hybrid Strategies

Business methods that combine elements of both cost leadership and differentiation strategies to achieve competitive advantage.