If a tax is imposed on a market with inelastic supply and elastic demand, then
A: buyers will bear most of the burden of the tax.
B: sellers will bear most of the burden of the tax.
C: the burden of the tax will be shared equally between buyers and sellers.
D: it is impossible to determine how the burden of the tax will be shared.
A: buyers will bear most of the burden of the tax.
B: sellers will bear most of the burden of the tax.
C: the burden of the tax will be shared equally between buyers and sellers.
D: it is impossible to determine how the burden of the tax will be shared.
举一反三
- When a tax is placed on the buyers of lemonade A: sellers bear the entire burden of the tax. B: buyers bear the entire burden of the tax. C: burden of the tax will be always be equally divided between the buyers and the sellers. D: burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal.
- A tax imposed on a market with an inelastic demand and an elastic supply will cause() A: sellers to pay the<br/>majority of the tax. B: buyers to pay the<br/>majority of the tax. C: the tax burden to<br/>be equally divided between buyers and sellers. D: the tax burden to<br/>be divided, but it cannot be determined how.
- Which of the following statements is most accurate in regard to the tax division between buyers and sellers of products with perfectly elastic demand A: Sellers pay the entire tax. B: Buyers bear the entire tax burden. C: Buyers and sellers share the tax burden.
- The economic incidence of a tax partly depends on（） A: actual effects on people’s incomes B: consumer’s reaction to imposition C: how much burden producers bear D: how sensitive sellers of the commodity are
- If the supply of land were perfectly inelastic, a tax on land would be paid: A: partly by sellers and partly by buyers. B: entirely by sellers. C: entirely by buyers. D: It is impossible to determine given this information.