Suppose a Tax of $1 Per Unit Is Imposed on a Good.The

question 9

Multiple Choice

Suppose a tax of $1 per unit is imposed on a good.The more elastic the supply of the good,other things equal,the

• A)smaller is the response of quantity supplied to the tax.
• B)larger is the tax burden on sellers relative to the tax burden on buyers.
• C)larger is the deadweight loss of the tax.
• D)All of the above are correct.