2. When the price elasticity of demand is low and the price elasticity of supply is...
2. When the price elasticity of demand is low and the price elasticity of supply is high, the burden of an excise tax falls primarily on:
Consumers
Producers
None of the above
Equally divided
Homework Answers
"Consumer"
Demand elasticity is low that means the consumer will buy the goods even when there is an increase in the price. But same is not with the supply, then the consumer will bear the burden of tax. the answer is "A".
Add Answer to:
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