If the demand curve is less elastic than the supply curve, then:
A. the buyers will bear a greater tax incidence.
B. the buyers will bear a smaller tax burden than sellers.
C. the sellers will bear a greater tax burden than buyers.
D. the sellers will bear a greater tax incidence.
Answer: A
You might also like to view...
Which of the following will NOT work to increase the rate of economic growth?
A) increase saving B) limit competition from international trade C) improve the quality of education D) All of the above will work to increase the rate of economic growth.
For each of the following changes, identify whether there will be a shift in the IS curve or a movement along the IS curve. In each case identify the direction of the movement or shift
a. The real interest rate decreases. b. The government decreases tax rates. c. Government spending decreases. d. Investors become optimistic about future profitability.
Which of the following is not a trade-restricting practice?
a. subsidy b. tariff c. quota d. a voluntary limit on exports e. higher safety standards for imports than for the same good sold domestically.
In the early 1920s,
a. Germany experienced a very high rate of inflation. b. the quantity of German money was declining rapidly. c. the value of German money remained almost constant. d. All of the above are correct.