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(Figure: Commodity Tax with Elastic Demand) According Tothe Figure, Who

Question 11

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(Figure: Commodity Tax with Elastic Demand) According tothe figure, who bears the greater burden of a commodity tax?
Figure: Commodity Tax with Elastic Demand (Figure: Commodity Tax with Elastic Demand) According tothe figure, who bears the greater burden of a commodity tax? Figure: Commodity Tax with Elastic Demand A) The buyer will bear the greater burden of the tax. B) The seller will bear the greater burden of the tax.(True Answer ) Correct C) The buyer and the seller will split the tax burden equally. D) The government will bear the full burden of the tax.


A) The buyer will bear the greater burden of the tax.
B) The seller will bear the greater burden of the tax.(True Answer ) Correct
C) The buyer and the seller will split the tax burden equally.
D) The government will bear the full burden of the tax.

Correct Answer:

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