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The More Inelastic Is Demand,ceteris Paribus

Question 179

Multiple Choice

The more inelastic is demand,ceteris paribus:


A) the larger the welfare cost of a given tax.
B) the larger the proportion of the burden of a given tax borne by the sellers.
C) the larger the proportion of the burden of a given tax borne by the buyers.
D) the smaller amount of revenue generated by the tax.

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