If the producers bear a smaller tax incidence than the buyers in a market,which of the following must be true?
A) It must be a market for inferior goods.
B) It must be a market for luxury items.
C) Their supply curve must be more elastic than the buyers demand curve in this market.
D) Their supply curve must be less elastic than the buyers demand curve in this market.
Correct Answer:
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Q129: Q130: A subsidy: Q132: Q133: When a tax is placed on buyers: Q135: A subsidy: Q136: Q137: The relative tax burden borne by buyers Q137: If the demand curve is more elastic Q138: Policymakers who wish to discourage businesses that Q139: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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