A tax on umbrellas will most likely Select one: a.cause a large decline in the sales of umbrellas because demand is elastic. b.be an effective way to tax those who don’t earn enough to pay income taxes. c.fall mostly on the umbrella buyers rather than the producers. d.raise large amounts of tax revenue for the government.

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter6: Demand And Elasticity
Section: Chapter Questions
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 A tax on umbrellas will most likely

Select one:
a.cause a large decline in the sales of umbrellas because demand is elastic.
b.be an effective way to tax those who don’t earn enough to pay income taxes.
c.fall mostly on the umbrella buyers rather than the producers.
d.raise large amounts of tax revenue for the government.
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