If the Supply of Automobiles Becomes More Inelastic,then a Tax

question 126

Multiple Choice

If the supply of automobiles becomes more inelastic,then a tax on automobiles is

• A) paid more by the buyers after the change than before.
• B) paid more by the sellers after the change than before.
• C) always split evenly between the buyers and the sellers.
• D) paid more by the government after the change than before.
• E) always paid entirely by the buyers.