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A Tax Is Imposed on a Market with Elastic Demand

Question 94

Multiple Choice

A tax is imposed on a market with elastic demand and inelastic supply.Who bears most of the burden of the tax


A) Buyers will bear most of the burden of the tax.
B) Sellers will bear most of the burden of the tax.
C) The burden of the tax will be shared equally between buyers and sellers.
D) The burden of the tax will be shared equally between buyers and the government.

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