The side of the market that will bear a greater share of the tax burden is the side that:
A. responds more to a change in prices.
B. is more inelastic.
C. changes quantity by a larger percentage when the price changes by a given percentage.
D. bears the statutory burden of the tax.
B. is more inelastic.
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National saving is defined as the amount of
A) business saving. B) household saving. C) business saving and household saving. D) private saving and government saving.
What is the source of the gains from trade?
What will be an ideal response?
Entry by new firms into a perfectly competitive industry
A. has no effect on existing firms. B. results in higher output by existing firms in equilibrium. C. results in lower output by existing firms in equilibrium. D. results in no change in the market price or output.
If my wage rate increases, utility maximization requires that my quantity of labor supplied
a. increase b. decrease c. increase if the income effect dominates the substitution effect d. increase if the substitution effect dominates the income effect e. increase if the substitution effect equals the income effect