Question
Oregon has no sales tax, and it shares a border with Washington state, which has a high sales tax. For an electronics retailer located in
Oregon has no sales tax, and it shares a border with Washington state, which has a high sales tax. For an electronics retailer located in Washington near the Oregon border, how would its geographic location affect the sales tax incidence
A. The retailer would bear a small burden because it would face a relatively elastic demand
B. The retailer would bear a large burden because it would face a relatively elastic demand
C. The retailer would bear a small burden because it would face relatively inelastic demand
D. The retailer would bear a large burden because it would face a relatively inelastic demand
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