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Demand for Gala Apples Is Relatively Elastic Compared to the Supply

Question 44

Multiple Choice

Demand for Gala apples is relatively elastic compared to the supply of Gala apples,so if a tax is imposed on the consumers of Gala apples,the tax incidence:


A) is typically on consumers more than producers.
B) is typically on producers more than consumers.
C) is typically split equally between consumers and producers.
D) cannot be determined without more information.

Correct Answer:

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