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    Principles of Economics Study Set 8
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    Exam 6: Supply, Demand, and Government Policies
  5. Question
    If the Demand Curve Is More Price Elastic Than the Supply
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If the Demand Curve Is More Price Elastic Than the Supply

Question 317

Question 317

Essay

If the demand curve is more price elastic than the supply curve, will the buyers or the sellers bear a greater burden of a tax? Draw a diagram to illustrate your answer.

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When the demand curve is more elastic th...

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