Suppose the government puts a tax on a market with inelastic supply and elastic demand, then---- O. it is impossible to determine how the burden of the tax will be shared. O. sellers will bear most of the burden of the tax. O. the burden of the tax will be shared equally between buyers and sellers. O. buyers will bear most of the burden of the tax.
Suppose the government puts a tax on a market with inelastic supply and elastic demand, then---- O. it is impossible to determine how the burden of the tax will be shared. O. sellers will bear most of the burden of the tax. O. the burden of the tax will be shared equally between buyers and sellers. O. buyers will bear most of the burden of the tax.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose the government puts a tax on a market with inelastic supply and
O. it is impossible to determine how the burden of the tax will be shared.
O. sellers will bear most of the burden of the tax.
O. the burden of the tax will be shared equally between buyers and sellers.
O. buyers will bear most of the burden of the tax.
Explain please
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