Suppose a tax were imposed on motel rooms in the San Antonio area.If demand were slightly elastic and supply were very inelastic,the tax would be borne
A)entirely by motel owners
B)mainly by motel owners
C)mainly by motel renters
D)entirely by motel renters

Question

Quizplus · Accepted Answer

When demand is slightly elastic and supply is very inelastic, the burden of the tax falls mainly on the suppliers (motel owners in this case) because the suppliers are less able to pass the tax onto consumers due to their inelastic supply curve.

Suppose a Tax Were Imposed on Motel Rooms in the San