When the price elasticity of demand is low and the price elasticity of supply is high, the burden of a tax falls primarily on Select one: O a. the tax payers. O b. sellers of the product O c. buyers of the product O d. both buyers and sellers of the product equally.

Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Costs Of Taxation
Section: Chapter Questions
Problem 1CQQ
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When the price elasticity of demand is low and the price elasticity of supply is high, the burden of
a tax falls primarily on
Select one:
O a. the tax payers.
b. sellers of the product
Oc. buyers of the product
O d. both buyers and sellers of the product equally.
Transcribed Image Text:When the price elasticity of demand is low and the price elasticity of supply is high, the burden of a tax falls primarily on Select one: O a. the tax payers. b. sellers of the product Oc. buyers of the product O d. both buyers and sellers of the product equally.
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