The actual burden of a tax Is distributed independently of relative elasticities of supply and demand Falls most heavily on the side of the market that is closest to unitary elasticity Falls most heavily on the side of the market that is more elastic Falls most heavily on the side of the market that is more inelastic
The actual burden of a tax Is distributed independently of relative elasticities of supply and demand Falls most heavily on the side of the market that is closest to unitary elasticity Falls most heavily on the side of the market that is more elastic Falls most heavily on the side of the market that is more inelastic
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 16E: Who would pay a tax imposed on the supplier when the price elasticity of supply is inelastic and the...
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Transcribed Image Text:The actual burden of a tax
Is distributed independently of relative elasticities of supply and demand
Falls most heavily on the side of the market that is closest to unitary elasticity
Falls most heavily on the side of the market that is more elastic
Falls most heavily on the side of the market that is more inelastic
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