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    Exam 6: Government Actions in Markets
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    If Demand for Good Is Very Inelastic and Supply for the Good
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If Demand for Good Is Very Inelastic and Supply for the Good

Question 70

Question 70

Multiple Choice

If demand for good is very inelastic and supply for the good is very elastic a sales tax imposed on sellers will cause the price received by sellers


A) would not change very much.
B) would rise by more than the amount of the tax.
C) would fall by an amount of the tax.
D) would fall by more than the amount of the tax.

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