Use the following to answer question(s): Tax Incidence

-(Exhibit: Tax Incidence) All other things unchanged, when a good or service is characterized by a relatively elastic demand, as shown in Panel _______ , the greater share of the burden of an excise tax imposed on it (shown by the tax wedge in each panel) is borne by _______ .
A) (d); buyers
B) (d); sellers
C) (c); sellers
D) (c); buyers

Question

Use the following to answer question(s): Tax Incidence
 
-(Exhibit: Tax Incidence) All other things unchanged, when a good or service is characterized by a relatively elastic demand, as shown in Panel _______ , the greater share of the burden of an excise tax imposed on it (shown by the tax wedge in each panel) is borne by _______ .
A) (d); buyers 
B) (d); sellers 
C) (c); sellers 
D) (c); buyers

Quizplus · Accepted Answer

The Answer of Use the following to answer question(s): Tax Incidence
 
-(Exhibit: Tax Incidence) All other things unchanged, when a good or service is characterized by a relatively elastic demand, as shown in Panel _______ , the greater share of the burden of an excise tax imposed on it (shown by the tax wedge in each panel) is borne by _______ .
A) (d); buyers 
B) (d); sellers 
C) (c); sellers 
D) (c); buyers

Use the Following to Answer Question(s): Tax Incidence