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-If a Unit Excise Tax Is Placed on a Good

Question 65

Multiple Choice

-If a unit excise tax is placed on a good for which the demand is very unresponsive to a price change, then A) the government generally pays the majority of the tax. B) the consumers generally pay the majority of the tax. C) the producers generally pay the majority of the tax. D) producers and consumers pay equal portions of the tax.
-If a unit excise tax is placed on a good for which the demand is very unresponsive to a price change, then


A) the government generally pays the majority of the tax.
B) the consumers generally pay the majority of the tax.
C) the producers generally pay the majority of the tax.
D) producers and consumers pay equal portions of the tax.

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