Asked by

Christo Delport
on Dec 11, 2024

verifed

Verified

The actual burden of a tax

A) falls most heavily on the side of the market that is more elastic.
B) falls most heavily on the side of the market that is more inelastic.
C) falls most heavily on the side of the market that is closest to unitary elasticity.
D) is distributed independently of relative elasticities of supply and demand.

Tax Burden

The measure of the total taxes paid by an individual, corporation, or another entity relative to its income, assets, or consumption levels.

Elastic

A characteristic of a good or service that indicates a greater than proportional change in quantity demanded or supplied in response to price changes.

Inelastic

Describes demand or supply that is relatively unresponsive to price changes, meaning quantity demanded or supplied changes little when price changes.

  • Elucidate the role played by the elasticity of demand and supply in determining the allocation of a tax's burden.
verifed

Verified Answer

AE
Alyssa EldridgeDec 12, 2024
Final Answer:
Get Full Answer