If the demand curve is less elastic than the supply curve, then:
A. the buyers will bear a greater tax incidence.
B. the sellers will bear a greater tax incidence.
C. the buyers will bear a smaller tax burden than sellers.
D. the sellers will bear a greater tax burden than buyers.
A. the buyers will bear a greater tax incidence.
You might also like to view...
Recent proposals for immigration reform that have drawn intense political fire include the following, except:
A. Increase fines for employers who knowingly hire illegal immigrants B. Implement a new amnesty program for illegal immigrants C. Shift immigration quotas away from family ties toward education-level and skills D. Create a guest-worker program with a tight cap
The aging of the labor force in the United States is likely to ________ the natural rate of unemployment; an increase in the efficiency of the labor market is likely to ________ the natural rate of unemployment.
A. increase; decrease B. decrease; decrease C. decrease; increase D. increase; increase
When a firm practices perfect price discrimination,
a. Consumer surplus is maximized b. Producer surplus is minimized c. Producer surplus is maximized d. None of the above
Which of the following does not explain why consumers buy products that many other consumers are already buying?
A) network externalities B) the satisfaction people derive by being viewed as "fashionable" C) cost-effective way to gather information about a product D) differences in tastes and preferences