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When a Tax Is Imposed on the Suppliers of a Good

Question 91

Multiple Choice

When a tax is imposed on the suppliers of a good or service, then


A) in general, the producers pay all the tax.
B) in general, the consumers pay all the tax.
C) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes smaller.
D) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes larger.

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