If Supply Is Relatively Inelastic When Compared with Demand in a Perfectly

question 41

Multiple Choice

If supply is relatively inelastic when compared with demand in a perfectly competitive market,:

• A)consumers will share a larger burden of an excise tax than producers.
• B)consumers and producers will share the burden of an excise tax equally.
• C)producers will share a larger burden of an excise tax than consumers.
• D)the incidence of the tax cannot be determined without more information.