When demand is more elastic than supply, demanders pay a smaller share of the tax and sellers pay a larger share of the tax. Select one: a. False b. True
When demand is more elastic than supply, demanders pay a smaller share of the tax and sellers pay a larger share of the tax. Select one: a. False b. True
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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Question
When demand is more elastic than supply, demanders pay a smaller share of the tax and sellers pay a larger share of the tax.
Select one:
a.
False
b.
True
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