When the price elasticity of supply is _____ relative to the price elasticity of demand, then sellers bear _____ of the economic burden of a tax.Question 10Answera.large; a bigger shareb.small; allc.small; noned.large; a smaller share

When the price elasticity of demand is relatively __________ elastic than the price elasticity of supply, the burden of an excise tax falls mainly on __________.1 pointas; buyers.less; sellers.more; buyers.more; sellers

Which statement is true?Group of answer choicesThe economic incidence of taxation falls more heavily on the more inelastic side of the market.In general the burden of the tax falls on the more elastic side of the marketIn general the burden of the tax falls on the side of the market who is legally responsible for paying the tax.The economic incidence of taxation falls fully on the sellers if supply is perfectly elastic and/or if demand is perfectly inelastic.None of the statements are true.

At high price levels, demand tends to be ________ and the price effect is ________, relative to the output effect.Question 9Answera.inelastic; largeb.elastic; smallc.inelastic; small

6. The economic incidence of a tax is larger on consumers: (i) The larger is the elasticity of demand relative to the elasticity of supply. (ii) The more salient is the tax. (iii) The less salient is the tax. (iv) The more inelastic is supply.

The tax burden is mainly borne by the producers if the supply is more elastic than the demand.