Suppose that a tax is placed on a particular good. If the sellers end up bearing most of the tax burden, this indicates that the

a. demand is more inelastic than supply.
b. supply is more inelastic than demand.
c. government has required that buyers remit the tax payments.
d. government has required that sellers remit the tax payments.

B

Economics

You might also like to view...

Refer to Figure 4-6. What area represents consumer surplus at the equilibrium price of P1?

A) D + E B) A C) A + B + C + D + E D) A + B + C

Economics

A firm in short-run equilibrium always earns positive profits if

a. AC > P > AVC. b. AR > AC. c. MR = MC. d. AC > MC.

Economics