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All other things equal, when a good or service is characterized by a relatively elastic demand...

All other things equal, when a good or service is characterized by a relatively elastic demand the greater share of the burden of an excise tax imposed on the _______ and the ______ the tax revenue earned by the government.

A. consumer, greater

B. producer, less

C. consumer, less

D. producer, greater

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Answer #1

ALL other things equal ,when a good pen service is characterized by a relatively elastic demand the greater share of the burden of an excise tax imposed on the producer and less the  tax revenue earned by the government. Because the more elastic the demand ,the more burden is on sellers and less on consumers , and elastic demand generates less revenue .Hence, option(B) is correct.

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