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The Price Elasticity of Demand for a Particular Cancer Drug

Question 188

Multiple Choice

The price elasticity of demand for a particular cancer drug is zero and the price elasticity of supply is 0.50.If a $1 excise tax is levied on producers,how much of this tax will eventually be paid by consumers?


A) $0
B) $1
C) $0.50
D) $1.50

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