Question

1) A tax on sellers shifts the curve to the A) Supply; left B) Supply; right C) Demand; left D) Demand; right 2) Buyers bear a smaller incidence of the tax when: A) The tax is higher B) Supply is more elastic than demand C) Demand is more elastic than supply D) Demand is perfectly inelastic

Answer 1

A tax on sellers shifts the curve to the A) Supply; left B) Supply; right C) Demand; left D) Demand; right

Answer: A) Supply; left

Buyers bear a smaller incidence of the tax when: A) The tax is higher B) Supply is more elastic than demand C) Demand is more elastic than supply D) Demand is perfectly inelastic

Answer: C) Demand is more elastic than supply