Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4 ?

Question

TuteeHUB · Accepted Answer

NA

TuteeHUB · Answer

The buyers pay a larger portion of the tax because demand is more inelastic than supply

TuteeHUB · Answer

The sellers pay a larger portion of the tax because supply is more elastic than demand

TuteeHUB · Answer

The buyers pay a larger portion of the tax because demand is more elastic then supply

TuteeHUB · Answer

The sellers pay a larger portion of the tax because supply is more inelastic than demand

1.	Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4 ?
A.	The buyers pay a larger portion of the tax because demand is more inelastic than supply
B.	The sellers pay a larger portion of the tax because supply is more elastic than demand
C.	The buyers pay a larger portion of the tax because demand is more elastic then supply
D.	The sellers pay a larger portion of the tax because supply is more inelastic than demand
Answer» E.

Discussion