Multiple Choice
If the elasticity of demand for a good is greater than the government expected:
A) Consumers will bear more of the burden of the tax than the government expected.
B) Producers will bear more of the burden of the tax than the government expected.
C) The tax will raise less revenue than the government expected.
D) Both b. and c. are true.
Correct Answer:
Verified
Correct Answer:
Verified
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