Use the Following to Answer Question(s): Tax Incidence

Multiple Choice

Use the following to answer question(s) : Tax Incidence

-(Exhibit: Tax Incidence) All other things unchanged, when a good or service is characterized by a relatively elastic supply, as shown in Panel _______ , the greater share of the burden of an excise tax imposed on it (shown by the tax wedge in each panel) is borne by _______.

A) (a) ; buyers
B) (b) ; sellers
C) (b) ; buyers
D) (a) ; sellers