Question

Sellers of a good bear the larger share of the tax burden when a tax is placed on a product for which the (i) supply is more elastic than the demand. (ii) demand in more elastic than the supply. (iii) tax is placed on the sellers of the product. (iv) tax is placed on the buyers of the product.

a. (i) and (iv) only

b. (ii) and (iii) only

c. (ii) only

d. (i) only

Answer 1

A because Iv and i fits perfectly