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If the Demand for a Good Is Very Price-Elastic, Then

Question 53

Multiple Choice

If the demand for a good is very price-elastic, then the imposition of a per-unit tax on that good will cause


A) the buyers to bear a larger portion of the tax burden.
B) the sellers to bear a larger portion of the tax burden.
C) no one to bear any tax burden.
D) the buyers and sellers to bear the tax burden evenly.
E) no effect on the market for that good.

Correct Answer:

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