Demand for Gala Apples Is Relatively Elastic Compared to the Supply

question 95

Multiple Choice

Demand for Gala apples is relatively elastic compared to the supply of Gala apples,so if a tax is imposed on the consumers of Gala apples,the tax incidence:

• A)is typically on consumers more than producers.
• B)is typically on producers more than consumers.
• C)is typically split equally between consumers and producers.
• D)cannot be determined without more information.

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Definitions:

Bootstrapping

Funding a business startup or growth through internal cash flow and without external investment.

Expand

To increase in size, volume, number, or scope.

Outside Investors

Individuals or entities that invest capital in a business but are not part of its daily operations or management.

Penny Pinching

A term used to describe the act of being very careful with money and spending it sparingly.