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If a Tax Is Imposed on a Market with Elastic

Question 225

Multiple Choice

If a tax is imposed on a market with elastic demand and inelastic supply:


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) neither the buyer nor the seller will bear the burden of the tax..

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