If a Tax Is Imposed on a Market with Inelastic

question 143

Multiple Choice

If a tax is imposed on a market with inelastic demand and elastic supply,then

• A)buyers will bear most of the burden of the tax.
• B)sellers will bear most of the burden of the tax.
• C)the burden of the tax will be shared equally between buyers and sellers.
• D)it is impossible to determine how the burden of the tax will be shared.

---

Definitions:

Warby Parker

An American online retailer of prescription glasses and sunglasses, known for its home try-on program.

Premarket Testing

The process of evaluating the market potential of a new product or service before its full-scale launch, often involving selected consumers or client feedback.

Concept Testing

The process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions.

Late Majority

A category of consumers in the diffusion of innovation model who adopt a new product or technology after the average member of a society.