Ask Question
BusinessBusiness
21 May, 22:06

Sellers of a good bear the larger share of the tax burden when a tax is placed on a product for which the

a. supply is more elastic than the demand.

b. demand in more elastic than the supply.

c. tax is placed on the sellers of the product.

d. tax is placed on the buyers of the product.

+4
Answers (1)
  1. 22 May, 02:02
    0
    b. demand in more elastic than the supply.

    Explanation:

    Elasticity is defines as the measure of responsiveness of quantity demanded and supplied to changes in price.

    In a situation where demand is more elastic than supply and tax is imposed, the suppliers can bear more cost due to tax without the quantity changing by much.

    On the other hand when taxes are applied if sellers want to move it to buyers that have elastic demand, it will result in a big fall in the quantity demanded.

    So the seller's bear the cost in this scenario because demand is elastic and will fall with small price increase.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Sellers of a good bear the larger share of the tax burden when a tax is placed on a product for which the a. supply is more elastic than ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is true about foreign direct investment (FDI) ? (A) It is less risky than franchising (B) It is only done by public companies (C) It is different than a Greenfield venture (D) It involves ownership of foreign assets
Answers (1)
A message is updated on the company's web site. What is the communication type that is being used in that example? A. External formal communication B. External informal communication C. Internal formal communication D.
Answers (1)
In 2020, the TransUnion Company had consulting revenues of $1,130,000 while costs were $710,000. In 2021, TransUnion will be introducing a new service that will generate $215,000 in sales revenues and $73,000 in costs.
Answers (1)
Which of the following is NOT a function of inventory? A. To increase total invested capital B. To provide selection of goods for anticipated customer demand C. To leverage discounts for buying in bulk D.
Answers (1)
The responsibilities of conception, pricing, positioning, and distribution of ideas, goods, or services are referred to as the marketing mix. T/F
Answers (1)
New Questions in Business
The balanced scorecard approach uses only financial measures to evaluate performance. uses rather vague, open statements when setting objectives in order to allow managers and employees flexibility.
Answers (1)
In the open economy of Sildavia, government spending during 2005 was $30 billion, consumption was $70 billion, taxes were $20 billion, and GDP was $100 billion.
Answers (1)
Ridiculousness, Inc., has sales of $49,000, costs of $22,600, depreciation expense of $2,150, and interest expense of $1,900. If the tax rate is 21 percent, what is the operating cash flow, or OCF?
Answers (1)
A common measure of liquidity is a. the accounts receivable turnover. b. dividends per share of common stock. c. the asset turnover ratio. d. the profit margin.
Answers (1)
Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant.
Answers (1)
Home » Business » Sellers of a good bear the larger share of the tax burden when a tax is placed on a product for which the a. supply is more elastic than the demand. b. demand in more elastic than the supply. c. tax is placed on the sellers of the product. d.
Sign Up Forgot Password?