Suppose the government puts a tax on a market with inelastic supply and elastic demand, then---- O. it is impossible to determine how the burden of the tax will be shared. O. sellers will bear most of the burden of the tax. O. the burden of the tax will be shared equally between buyers and sellers. O. buyers will bear most of the burden of the tax.
Suppose the government puts a tax on a market with inelastic supply and elastic demand, then---- O. it is impossible to determine how the burden of the tax will be shared. O. sellers will bear most of the burden of the tax. O. the burden of the tax will be shared equally between buyers and sellers. O. buyers will bear most of the burden of the tax.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter5: Elasticity Of Demand And Supply
Section5.A: Appendix: Price Elasticity And Tax Incidence
Problem 2AQ
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Suppose the government puts a tax on a market with inelastic supply and
O. it is impossible to determine how the burden of the tax will be shared.
O. sellers will bear most of the burden of the tax.
O. the burden of the tax will be shared equally between buyers and sellers.
O. buyers will bear most of the burden of the tax.
Explain please
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