Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

A particular tax is levied on a product with zero elasticity of supply. Which statement is correct?

  • AThe burden of this tax will fall entirely on consumers.
  • BThe burden of this tax will fall entirely on suppliers.
  • CThe burden of this tax will fall mainly on consumers.
  • DThe burden of this tax will fall mainly on suppliers.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI