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The Burden of a Tax Is Mainly Borne by the Buyer

Question 53

Multiple Choice

The burden of a tax is mainly borne by the buyer if:


A) the supply of the good is perfectly price elastic.
B) if the supply of the good is relatively price elastic.
C) if the demand for the good is relatively price elastic.
D) if the demand for the good is relatively price inelastic.
E) if the demand for the good is perfectly price elastic.

Correct Answer:

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