Time left 0:.21) The elasticity of demand for potato chips is 0.6 and the elasticity of supply for these chips is1.9. If a tax were imposed on purchases of potato chips, then theO a.consumers would pay more of the tax.O b. the producers would pay more of the tax.C.the tax would be equally shared by the consumers and the producers.O d. the consumers would pay the entire tax because their demand is less elastic than theproducers' supply.Clear my choiceageNext page

Elasticity is the responsiveness of demand or supply due to a change in own price of the good.…

21) The elasticity of demand for potato chips is 0.6 and the elasticity of supply for these chips is 1.9. If a tax were imposed on purchases of potato chips, then the consumers would pay more of the tax. O a. O b. the producers would pay more of the tax. Oc. the tax would be equally shared by the consumers and the producers. O d. the consumers would pay the entire tax because their demand is less elastic than the producers' supply.

21) The elasticity of demand for potato chips is 0.6 and the elasticity of supply for these chips is 1.9. If a tax were imposed on purchases of potato chips, then the consumers would pay more of the tax. O a. O b. the producers would pay more of the tax. Oc. the tax would be equally shared by the consumers and the producers. O d. the consumers would pay the entire tax because their demand is less elastic than the producers' supply.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 26CTQ: What is the relationship between price elasticity and position on the demand curve? For example, as...

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