Multiple Choice
If a tax is imposed on a market with inelastic demand,how is the burden of the tax distributed
A) Buyers will bear most of the burden of the tax if the supply is elastic.
B) Sellers will bear most of the burden of the tax if the supply is elastic.
C) Buyers will bear most of the burden of the tax if the supply is inelastic.
D) Sellers will bear most of the burden of the tax if the supply is inelastic.
Correct Answer:
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