Figure: Commodity Tax with Elastic Demand According to the Figure

question 11

Multiple Choice

Figure: Commodity Tax with Elastic Demand According to the figure, who bears the greater burden of a commodity tax?

• A) The buyer will bear the greater burden of the tax.
• B) The seller will bear the greater burden of the tax.
• C) The buyer and the seller will split the tax burden equally.
• D) The government will bear the full burden of the tax.

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