Which of the Following Statements Is Correct Regarding the Imposition

question 254

Multiple Choice

Which of the following statements is correct regarding the imposition of a tax on gasoline?

• A)​The incidence of the tax always falls on the buyer.
• B)​The incidence of the tax depends upon the price elasticities of demand and supply.
• C)​The incidence of the tax always falls on the sellers.
• D)​The oil company will ultimately pay.

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Definitions:

Value Chain

The series of steps a company takes to add value to its product or service, from raw materials to the final customer.

Supply Chain

A network of organizations, people, activities, information, and resources involved in the production and delivery of a product or service from supplier to customer.

Core Element

An essential part or component that is central to the function or structure of something.

Product Development Strategy

A business strategy focusing on developing new products or improving existing ones to meet market demand or create new markets.