The actual burden of a tax
a. falls most heavily on the side of the market that is more elastic.
b. falls most heavily on the side of the market that is more inelastic.
c. falls most heavily on the side of the market that is closest to unitary elasticity.
d. is distributed independently of relative elasticities of supply and demand.
B
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A market survey conducted by an electronics manufacturer reported a year on year growth in the sale of television sets, along with an increase in the selling price. Which of the following could be a likely cause for this situation?
a. A decrease in supply b. An increase in demand c. A decrease in demand d. An exception to the law of demand e. An increase in supply
A change in the price level in an economy will be depicted by a movement along the AE curve and not by a leftward or rightward movement of the curve
a. True b. False Indicate whether the statement is true or false