Solved

If Government Imposes an Excise Tax on a Good and the Tax

Question 14

Multiple Choice

If government imposes an excise tax on a good and the tax burden is borne equally by buyers and sellers,then


A) price elasticity of demand is unitary.
B) price elasticity of supply is unitary.
C) the absolute values of price elasticities of demand and supply are equal.
D) None of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions