All Else Equal,if Supply Is Relatively Elastic and Demand Is

question 102

Multiple Choice

All else equal,if supply is relatively elastic and demand is relatively inelastic,a tax on a product will cause

• A) buyers to bear a larger portion of the tax burden.
• B) sellers to bear a larger portion of the tax burden.
• C) buyers and sellers to share the tax burden equally.
• D) It is impossible to tell from this information who will bear the greater tax burden.