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If the Demand for Coffee and the Supply of Coffee

Question 137

Multiple Choice

If the demand for coffee and the supply of coffee are both elastic then:


A) coffee buyers will bear most of the burden of the tax
B) coffee sellers will bear most of the burden of the tax
C) the burden of the tax will be shared equally between buyers and sellers
D) it is impossible to determine how the burden of the tax will be shared

Correct Answer:

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