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If the Quantity Demanded Is Relatively Sensitive to Changes in Price

Question 41

Multiple Choice

If the quantity demanded is relatively sensitive to changes in price and the quantity supplied is relatively insensitive to changes in price,the imposition of a sales tax will


A) shift entirely to the buyer.
B) fall more heavily on the buyer.
C) be equally shared by the buyer and seller.
D) fall more heavily on the seller.
E) shift entirely to the seller.

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