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If Buyers Pay More of a Tax Than the Sellers

Question 22

Multiple Choice

If buyers pay more of a tax than the sellers,


A) supply is more elastic than demand.
B) the equilibrium price paid by buyers rises by less than half the amount of the tax.
C) demand is more elastic than supply.
D) the amount of tax revenue collected by the government is almost zero.
E) None of the above answers is correct.

Correct Answer:

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