When Supply Is Perfectly Elastic,the Entire Tax Burden Falls on the ____

question 135

Short Answer

When supply is perfectly elastic,the entire tax burden falls on the ____.

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Definitions:

Deep Discount

A significant reduction in price offered on a product or service, often to clear inventory or attract buyers.

Coupon Bond

A debt security that pays the holder a fixed interest rate (coupon) over a specified period until its maturity.

Indenture Agreement

A formal contract between a bond issuer and a bondholder that specifies the terms of the bond.

Call Provision

A feature of a bond that allows the issuer to repay the bond before its maturity date.