Multiple Choice
If demand is relatively inelastic and supply relatively elastic, the incidence of an excise tax
A) falls primarily on consumers.
B) falls primarily on producers.
C) is shared evenly by consumers and producers.
D) falls entirely on consumers.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q367: Price elasticity of supply will always be
Q368: If a product's price rises by 6%
Q369: (Figure: Interpreting Price Changes) Based on the
Q370: An excise tax of $2 is placed
Q371: Tax incidence is defined as the amount
Q373: The loss in consumer and producer surplus
Q374: Which of these is the MOST important
Q375: In comparing the change in prices of
Q376: If prices increase by the same percentage
Q377: (Figure) The figure shows two demand curves