If the Demand for Liquor Is Elastic,and the Government Increases

question 106

Multiple Choice

If the demand for liquor is elastic,and the government increases liquor tax,then _____.

• A)most of the tax will be paid by the consumer
• B)most of the tax will be paid by the producer
• C)all of the tax will be paid by the consumer
• D)all of the tax will be paid by the producer
• E)the tax will be paid by the retailer