contestada

Which of the following is correct? A tax burden a. falls more heavily on the side of the market that is closest to unit elastic. b. falls more heavily on the side of the market that is more elastic. c. is distributed independently of the relative elasticities of supply and demand. d. falls more heavily on the side of the market that is less elastic.

Respuesta :

tutordamola

Answer:

The answer is D.

Explanation:

Tax burden can also be called tax incidence and it is a measure of the impact of imposition of tax on the participants i.e producers. Snd seller.

Tax burden or tax incidence the tax burden falls more heavily on the side of the market that is less elastic(the tax burden falls more heavily on participant that is not willing to exit the market when price is high

Parrain

The true statement above is that a tax burden d. falls more heavily on the side of the market that is less elastic.

Why is this the case?

When a market is less elastic, it means that quantity demanded does not change by much when prices change.

As a result, suppliers will place the tax burden more on the market and increase the price of goods because they know that demand will not change by much regardless.

In conclusion, option D is correct.

Find out more on elasticity at https://brainly.com/question/1536972.

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