Assume the Demand for Automobile Tires Is Highly Inelastic and That

question 90

Multiple Choice

Assume the demand for automobile tires is highly inelastic and that the supply is highly elastic.The burden of a $2 excise tax on each tire will be:

• A) borne by resource suppliers who provide the inputs for manufacturing tires.
• B) shared about equally by buyers and sellers of tires.
• C) borne primarily by buyers of tires.
• D) borne primarily by sellers of tires.

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Definitions:

Decedent's Will

A legal document specifying how an individual’s assets and responsibilities should be managed and distributed after their death.

Estate Administration

The process in which a decedent’s personal representative settles the affairs of the decedent’s estate, collects assets, pays debts and taxes, and distributes the remaining assets to heirs. The process is usually overseen by a probate court.

Probate Court

A specialized court that deals with matters pertaining to wills, estates, conservatorships, and guardianships.

Decedent's Estate

All the assets and liabilities left behind by a person who has passed away.