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The Elasticity of Demand for Gala Apples Is Relatively Elastic

Question 53

Essay

The elasticity of demand for Gala apples is relatively elastic, so if a tax is levied 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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is typical...

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