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A.
A proportional tax is one which takes from high income people a larger fraction of their income than it takes for low income people
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B.
taxes on commodities of services which can be shifted elsewhere are usually called direct taxes
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C.
The sole proprietor is a legal entity
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D.
the influence of demand on price will be smallest on the short run
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E.
the cost of production is the most important determining factor of supply in the long run
Correct Answer: Option D
Explanation
In the short run, demand is likely to be more inelastic (low = less than 1). If people are used to buying a good, then when the price goes up, they will tend to keep buying it out of habit.
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