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The Portion of a Sales Tax Increase Paid by the Consumers

Question 53

Multiple Choice

The portion of a sales tax increase paid by the consumers of a good is smaller the


A) steeper the demand curve.
B) greater the upward shift of the supply curve.
C) less sensitive the quantity supplied is to changes in price.
D) smaller the downward shift of the supply curve.
E) less sensitive the quantity demanded is to changes in price.

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