If the Demand for a Good Is Very Price Elastic

question 204

Multiple Choice

If the demand for a good is very price elastic, the imposition of a tax on that good

• A) places the largest portion of the burden on the sellers of that product
• B) places the burden of the tax equally on buyers and sellers
• C) places the largest portion of the tax on consumers
• D) will make demand more elastic than it was before the tax
• E) will make demand more inelastic than it was before the tax

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