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Other Things Being Equal, the More Inelastic the Demand for a Taxed

Question 38

Multiple Choice

Other things being equal, the more inelastic the demand for a taxed good,


A) the greater the portion of the tax paid by sellers.
B) the greater the excess burden of the tax.
C) the greater the portion of the tax paid by buyers.
D) the less the portion of a tax on sellers that can be shifted to buyers.

Correct Answer:

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