An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when
a. the supply of the product is relatively inelastic.
b. the supply of the product is relatively elastic.
c. the demand for the product is relatively elastic.
d. either a or c is true.
D
Economics
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The "free rider" problem occurs when a good is
a. not available. b. not excludable. c. not depletable. d. not sold in free markets.
Economics
(Consider This) A value-added tax (VAT):
A. is another name for a retail sales tax but is otherwise the same. B. is like a sales tax but is only imposed on the difference between a firm's sales and its purchases from other firms. C. is like an income tax but is only imposed on the difference between a person's income and his or her consumption. D. only applies to imported goods.
Economics