Asked by
Daniel Fredman
on Nov 17, 2024
Verified
Suppose that a tax is placed on books. If the buyers pay the majority of the tax, then we know that the
A) demand is more inelastic than the supply.
B) supply is more inelastic than the demand.
C) government has required that buyers remit the tax payments.
D) government has required that sellers remit the tax payments.
Inelastic
Describes a situation where the demand for a good or service is relatively unresponsive to changes in price.
- Assess the influences determining the distribution of tax loads between purchasers and sellers.
- Grasp how the elasticity of supply and demand affects tax burdens.
Verified Answer
KH
Learning Objectives
- Assess the influences determining the distribution of tax loads between purchasers and sellers.
- Grasp how the elasticity of supply and demand affects tax burdens.