Asked by Rafaiel Ghazaryan on Jul 17, 2024
Verified
If demand is more elastic than supply,the buyer will pay ________ of a tax.
Elastic
A characteristic of a good or service with a demand or supply that significantly changes in response to price changes.
Buyer
An individual or entity that purchases goods or services for personal use, resale, or to incorporate into the production of other goods.
Tax
An essential monetary charge or dissimilar levy exacted upon a taxpayer by a government sector to facilitate government expenses and diverse expenditures for the public.
- Evaluate the influence of taxes on the equilibrium in the market and identify the parties affected by the tax load.
- Understand the distinctions between supply elasticity and demand elasticity, as well as their consequences.
Verified Answer
JA
Learning Objectives
- Evaluate the influence of taxes on the equilibrium in the market and identify the parties affected by the tax load.
- Understand the distinctions between supply elasticity and demand elasticity, as well as their consequences.