Suppose That the Demand for Digital Cameras Is Elastic,and the Supply

question 174

Multiple Choice

Suppose that the demand for digital cameras is elastic,and the supply of digital cameras is inelastic.A tax of $20 per camera levied on digital cameras will decrease the effective price received by sellers of digital cameras by

• A)less than $10.
• B)$10.
• C)between $10 and $20.
• D)$20.