Which statement related to elasticity and tax incidence is NOT true?
A) For products with an inelastic demand,the burden of the tax is borne almost entirely by the consumer.
B) For products with an inelastic supply,the burden of the tax is borne almost entirely by the producers.
C) For products with an elastic demand,the burden of the tax is borne almost entirely by the producers.
D) Parties with elastic demand or supply bear taxes; parties with inelastic demand or supply avoid them.
Correct Answer:
Verified
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