Severance taxes do not allow companies to shift any the tax burden to demanders because the supply of natural resources is completely inelastic.

Name: Severance taxes do not allow companies to shift any the tax burden to demanders because the supply of natural resources is completely inelastic.
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Question

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Severance taxes can lead to higher prices for consumers if companies are able to pass on some of the tax burden, depending on the elasticity of demand for the product and the market structure.

Severance Taxes Do Not Allow Companies to Shift Any the Tax