If the Supply Curve Is More Inelastic Than the Demand

question 127

Multiple Choice

If the supply curve is more inelastic than the demand curve,then:

• A) the sellers will bear a greater tax incidence than the buyers.
• B) the sellers will bear a smaller tax incidence than the buyers.
• C) the sellers will bear an equal tax incidence as the buyers.
• D) Any of these could be true.

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