Suppose That in a Particular Market, the Supply Curve Is

question 35

Multiple Choice

Suppose that in a particular market, the supply curve is highly elastic and the demand curve is highly inelastic. If a tax is imposed in this market, then the

• A)buyers will bear a greater burden of the tax than the sellers.
• B)sellers will bear a greater burden of the tax than the buyers.
• C)buyers and sellers are likely to share the burden of the tax equally.
• D)buyers and sellers will not share the burden equally, but it is impossible to determine who will bear the greater burden of the tax without more information.

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Definitions:

Incorporation Statutes

Laws that govern how companies can be legally established, regulated, and dissolved.

Voting Rights

Entitlements granted to shareholders or citizens to vote in corporate or public elections, respectively.

Unissued Shares

Unissued Shares are portions of a company's authorized capital stock that have been authorized for issuance but have not yet been issued to shareholders.

Treasury Stock

Shares that were once part of the open market stock but were bought back by the issuing company, reducing the amount of outstanding stock.