Author Question: In the long run, the greater burden of a specific tax will usually be absorbed by a. consumers. b. ... (Read 38 times)

dmcintosh · **on:** Jul 1, 2018

In the long run, the greater burden of a specific tax will usually be absorbed by
a. consumers.
b. the partyconsumers or producerswith the more elastic demand/supply curve.
c. the party with the least elastic demand/supply curve.
d. shareholders and employees of the firm in the form of reduced dividends and wages.

Question 2

In the short run, the incidence of a sales tax is
a. wholly absorbed by the producer.
b. shared between the consumer and the producer.
c. deferred until the market is able to re-establish an equilibrium price.
d. wholly absorbed by the consumer.