Asked by
Iwaloye Oluwaseyifunmi
on Dec 19, 2024
Verified
In general, the buyers will tend to pay a bigger share of a tax on a good when
A) the price elasticities of supply and demand are low.
B) the price elasticities of supply and demand are high.
C) the price elasticity of supply is low and the price elasticity of demand is high.
D) the price elasticity of supply is high and the price elasticity of demand is low.
Price Elasticities
Measures of the sensitivity of the quantity demanded or supplied of a good to a change in its price.
Tax Burden
The measure of the total amount of taxes that individuals, businesses, or other entities must pay relative to their income or consumption.
- Assess the significance of price elasticity in determining the distribution of tax obligations between consumers and merchants.
- Elaborate on how the elasticity of demand and supply affects the apportionment of taxes.
Verified Answer
NP
Learning Objectives
- Assess the significance of price elasticity in determining the distribution of tax obligations between consumers and merchants.
- Elaborate on how the elasticity of demand and supply affects the apportionment of taxes.