If the government wishes to discourage smoking by tax increases, the buyer pays a larger share of the tax if the: a. price is higher b. supply is price inelastic c. demand is price inelastic d. tax is imposed on the seller e. tax is imposed on the buyer

If the government wishes to discourage smoking by tax increases, the buyer pays a larger share of the tax if the: a. price is higher b. supply is price inelastic c. demand is price inelastic d. tax is imposed on the seller e. tax is imposed on the buyer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the government wishes to discourage smoking by tax increases, the buyer pays a larger share of the tax if the:

a. price is higher

b. supply is price inelastic

c. demand is price inelastic

d. tax is imposed on the seller

e. tax is imposed on the buyer

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