If a Tax Is Imposed on a Market with Elastic

question 225

Multiple Choice

If a tax is imposed on a market with elastic demand and inelastic supply:

• A) buyers will bear most of the burden of the tax.
• B) sellers will bear most of the burden of the tax.
• C) the burden of the tax will be shared equally between buyers and sellers.
• D) neither the buyer nor the seller will bear the burden of the tax..