If a tax is imposed on a market with inelastic demand and elastic supply, sellers will bear most of the burden of the tax. buyers will bear most of the burden of the tax. the burden of the tax will be shared equally between buyers and sellers. it is impossible to determine how the burden of the tax will be shared.
If a tax is imposed on a market with inelastic demand and elastic supply, sellers will bear most of the burden of the tax. buyers will bear most of the burden of the tax. the burden of the tax will be shared equally between buyers and sellers. it is impossible to determine how the burden of the tax will be shared.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 25SQ
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![If a tax is imposed on a market with inelastic demand and elastic supply,
sellers will bear most of the burden of the tax.
buyers will bear most of the burden of the tax.
the burden of the tax will be shared equally between buyers and sellers.
it is impossible to determine how the burden of the tax will be shared.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53419bf8-add0-48cb-b87d-efce75dfc052%2F8c9bf1cc-3c7f-4f93-abd3-c24838e92216%2Fku9zns_processed.png&w=3840&q=75)
Transcribed Image Text:If a tax is imposed on a market with inelastic demand and elastic supply,
sellers will bear most of the burden of the tax.
buyers will bear most of the burden of the tax.
the burden of the tax will be shared equally between buyers and sellers.
it is impossible to determine how the burden of the tax will be shared.
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