An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when
A) the supply of the product is relatively inelastic.
B) the supply of the product is relatively elastic.
C) the demand for the product is relatively elastic.
D) either a or c is true.

Question

Quizplus · Accepted Answer

The Answer of An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when
A) the supply of the product is relatively inelastic.
B) the supply of the product is relatively elastic.
C) the demand for the product is relatively elastic.
D) either a or c is true.

An Excise Tax Levied on a Product Will Impose a Smaller