Suppose the Demand for Macaroni Is Inelastic,the Supply of Macaroni

question 185

Multiple Choice

Suppose the demand for macaroni is inelastic,the supply of macaroni is elastic,the demand for cigarettes is inelastic,and the supply of cigarettes is elastic.If a tax were levied on the sellers of both of these commodities,we would expect that the burden of

• A)both taxes would fall more heavily on the buyers than on the sellers.
• B)the macaroni tax would fall more heavily on the sellers than on the buyers,and the burden of the cigarette tax would fall more heavily on the buyers than on the sellers.
• C)the macaroni tax would fall more heavily on the buyers than on the sellers,and the burden of the cigarette tax would fall more heavily on the sellers than on the buyers.
• D)both taxes would fall more heavily on the sellers than on the buyers.

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