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 demand, 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) (d) ; buyers
B) (d) ; sellers
C) (c) ; sellers
D) (c) ; buyers