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