The more inelastic the demand for a product, the more the actual burden of a tax on the product will:
a. fall on sellers.
b. fall on buyers.
c. fall equally on both buyers and sellers.
d. create a larger deadweight loss (or excess burden).
b
Economics
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Behavioral economists have discovered that
A) transitivity of preferences always holds, even in animals. B) the law of demand does not hold in controlled experiments. C) transitivity of preferences does not always hold, especially for young people. D) reflexivity of preferences is not true.
Economics
When the supply curve shifts to the left and there is no change in demand:
A. the market cannot reestablish an equilibrium. B. the equilibrium quantity will rise. C. the equilibrium price will fall. D. the equilibrium price will rise.
Economics