Suppose the elasticity of demand for a product is 0 and the elasticity of supply is 1. If the government imposes a tax on the product, then: a) buyers pay a smaller share of the tax than do sellers but both buyers and sellers pay some of the tax. b) seller pays all of the tax c) buyers and sellers pay exactly the same share of the tax. d) buyer pays all of the tax

Suppose the elasticity of demand for a product is 0 and the elasticity of supply is 1. If the government imposes a tax on the product, then: a) buyers pay a smaller share of the tax than do sellers but both buyers and sellers pay some of the tax. b) seller pays all of the tax c) buyers and sellers pay exactly the same share of the tax. d) buyer pays all of the tax

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 2SQP

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