Which of the following generalizations is correct?
A) The more elastic the demand and supply of a product, the larger the portion of an excise tax which is borne by buyers.
B) The more elastic the demand for a product, the larger the portion of an excise tax which is borne by buyers.
C) The more inelastic the supply of a product, the larger the portion of an excise tax which is borne by buyers.
D) The more inelastic the demand for a product, the larger the portion of an excise tax which is borne by sellers.
E) The more elastic the supply of a product, the larger the portion of an excise tax which is borne by buyers.
Correct Answer:
Verified
Q47: Assume the demand for a product is
Q48: Price ceilings and price floors:
A)cause surpluses and
Q49: If agricultural price supports are combined with
Q50: A price floor means that:
A)inflation is severe
Q51: An effective price floor on wheat will:
A)force
Q53: A price ceiling means that:
A)the relevant product
Q54: The main reason for agricultural price supports
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