-If a Sales Tax Is Imposed on a Product,which of the Following

question 2

Multiple Choice

-If a sales tax is imposed on a product,which of the following statements is correct?

• A)If the demand for the product is inelastic,the seller will pay a larger percentage of the tax than will the consumer.
• B)If the demand for the product is elastic,the seller will pay a smaller percentage of the product than will the consumer.
• C)The consumer will pay 100% of the tax.
• D)If the demand for the product is inelastic,the consumer will pay a larger percentage of the tax than will the seller.

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Definitions:

1972 Summit

A significant series of meetings during the Cold War, particularly referring to the historic Summit Series ice hockey competition between Canada and the Soviet Union.

China

A vast East Asian country with a rich history, diverse culture, and the world's largest population.

Moscow

The capital city of Russia, known for its historical architecture, cultural institutions, and as a significant political and economic center.

Anwar Sadat

The third President of Egypt, who initiated peace with Israel leading to the Camp David Accords, and was assassinated in 1981.