The Burden of a Tax Is Mainly Borne by the Buyer

question 116

Multiple Choice

The burden of a tax is mainly borne by the buyer if:

• A)the supply of the good is perfectly price elastic.
• B)if the supply of the good is relatively price elastic.
• C)if the demand for the good is relatively price elastic.
• D)if the demand for the good is relatively price inelastic.
• E)if the demand for the good is perfectly price elastic.

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Definitions:

Diplomacy

The practice of conducting negotiations between representatives of states or groups to manage international relations, resolve disputes, or foster cooperation.

Job Applicant

An individual who applies for a position of employment in a company or organization.

Effective Letter

A written communication that clearly conveys its intended message and achieves its purpose with the recipient.

Termination Letters

Written notifications from an employer to an employee stating the end of the employee's job within the company.