As the demand curve becomes steeper, the proportion of a sales tax paid by the seller

Name: As the demand curve becomes steeper, the proportion of a sales tax paid by the seller
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Question

Quizplus · Accepted Answer

A steeper demand curve indicates that demand is more inelastic, meaning consumers are less responsive to price changes. As a result, sellers can pass more of the tax burden onto consumers, decreasing the proportion paid by the seller.

As the Demand Curve Becomes Steeper, the Proportion of a Sales