The supply for gasoline is more elastic than the demand of gasoline. If gasoline is taxed $1 per gallon, how will the tax be divided between the buyers and sellers? The sellers will pay more of the tax than the buyers. sellers will pay the entire tax. buyers will pay more of the tax than the sellers. sellers and buyers will split the tax evenly.
The supply for gasoline is more elastic than the demand of gasoline. If gasoline is taxed $1 per gallon, how will the tax be divided between the buyers and sellers? The sellers will pay more of the tax than the buyers. sellers will pay the entire tax. buyers will pay more of the tax than the sellers. sellers and buyers will split the tax evenly.
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 25SQ
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The supply for gasoline is more
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