Which of the following statements is most accurate with respect to the effects of taxes imposed on goods and services?
A) The actual incidence will fall more heavily on the buyer if the demand is more elastic relative to supply.
B) The statutory incidence will fall more heavily on the buyer if the supply is less elastic relative to demand.
C) The actual incidence will fall more heavily on the seller if the supply is less elastic relative to demand.作者: RobertA 时间: 2011-7-11 19:45
I think it's C b/c if buyers have more choices( demand more elastic), then tax burden hurt suppliers more
