Assume the demand for automobile tires is highly elastic and that the supply is highly inelastic. The burden of a $2 excise tax on each tire will be
A) borne by resource suppliers that provide the inputs for manufacturing tires.
B) shared about equally by buyers and sellers of tires.
C) borne primarily by sellers of tires.
D) borne primarily by buyers of tires.
Correct Answer:
Verified
Q75: Q76: (Advanced analysis)The equations for the demand and Q77: (Advanced analysis)The equations for the demand and Q78: A progressive tax means that if someone Q79: Proprietary income refers to Q81: Which of the following is an exhaustive Q82: Approximately what percentage of the federal government's Q83: The total amount of U.S. tax revenue Q84: The average tax rate is Q85: Government borrowing
A)revenue flowing to the
A)equal to the
A)is the primary means of financing
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents