Let the price elasticity of supply for a good be 1.5, and the absolute value of the price elasticity of demand be 2.0. Which of the following is TRUE in this case?
A) Producers carry the majority of the tax burden.
B) Consumers carry the majority of the tax burden.
C) Producers and consumers carry an equal amount of the tax burden.
D) Consumers carry the entire tax burden.

Question

Quizplus · Accepted Answer

The Answer of Let the price elasticity of supply for a good be 1.5, and the absolute value of the price elasticity of demand be 2.0. Which of the following is TRUE in this case?
A) Producers carry the majority of the tax burden.
B) Consumers carry the majority of the tax burden.
C) Producers and consumers carry an equal amount of the tax burden.
D) Consumers carry the entire tax burden.

Let the Price Elasticity of Supply for a Good Be