Solved

Suppose a $1 Tax Is Placed on a Good

Question 162

Multiple Choice

Suppose a $1 tax is placed on a good. The more elastic the supply of the good, the


A) larger the increase in the after-tax price.
B) smaller the decrease in the quantity sold.
C) less of the tax will be paid by the buyers.
D) more of the tax will be paid by the sellers.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents