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Suppose Your City's Government Is Considering Levying a Tax on All

Question 28

Multiple Choice

Suppose your city's government is considering levying a tax on all commercial car washes within the city limits.The state government is also considering levying a tax on all commercial car washes in the state.In the short run,consumers bear _____ of the tax burden under the local tax than under the state tax.In the long run,car wash employees bear _______ of the tax burden under the local tax than under the state tax.


A) more; less
B) more; more
C) less; more
D) less; less

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