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If Supply Is More Inelastic Than Demand Is, the

Question 16

Multiple Choice

If supply is more inelastic than demand is, the


A) more the tax will fall on producers
B) more the tax will fall on consumers
C) less likely that a tax will have an impact on market transactions
D) less likely it a tax will lead to tax avoidance
E) greater the impact that a tax has on consumer expectations

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