Which of the following statements is correct? Choose an answer: O 1. Regardless of which side of the market the tax is levied on, the more inelastic side of the market bears the higher tax burden. 2. If the supply is more elastic than the demand, then the suppliers bear the greater tax burden than the buyers. O 3. The tax burden is incurred on the side of the market where the tax is levied. O 4. The tax burden is always borne half by the supplier and half by the customer. O 5. If the demand is more inelastic than the supply, then the providers bear the greater tax burden than the buyers.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Which of the following statements is
correct? Choose an answer:
O 1. Regardless of which side of the market the tax is levied on, the more inelastic side of the market bears the
higher tax burden.
O 2. If the supply is more elastic than the demand, then the suppliers bear the greater tax burden
than the buyers.
3. The tax burden is incurred on the side of the market where the tax is levied.
O 4. The tax burden is always borne half by the supplier and half by the customer.
O 5. If the demand is more inelastic than the supply, then the providers bear the greater
tax burden than the buyers.
O00
Transcribed Image Text:Which of the following statements is correct? Choose an answer: O 1. Regardless of which side of the market the tax is levied on, the more inelastic side of the market bears the higher tax burden. O 2. If the supply is more elastic than the demand, then the suppliers bear the greater tax burden than the buyers. 3. The tax burden is incurred on the side of the market where the tax is levied. O 4. The tax burden is always borne half by the supplier and half by the customer. O 5. If the demand is more inelastic than the supply, then the providers bear the greater tax burden than the buyers. O00
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