Multiple Choice
When a good is taxed, the tax burden
A) falls disproportionately on the side of the market that is more elastic.
B) falls disproportionately on the side of the market that is more inelastic.
C) falls disproportionately on the side of the market that is closer to unit elastic.
D) is not impacted by the relative elasticities of supply and demand.
Correct Answer:
Verified
Correct Answer:
Verified
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