Suppose that a market is initially in equilibrium,then a per-unit tax is imposed on sellers.The more elastic supply is,the ______ the burden of the tax borne by ______.
A) larger;producers
B) smaller;consumer
C) larger;consumer and producers
D) smaller;producers
E) smaller;consumers and producers

Question

Quizplus · Accepted Answer

When supply is more elastic, producers can more easily adjust their quantity supplied in response to the tax, resulting in a smaller tax burden on producers and a larger burden on consumers.

Suppose That a Market Is Initially in Equilibrium,then a Per-Unit