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.

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
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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