Economics 9708 · AS & A Level · Price elasticity of demand

Price elasticity of demand — practice question

A 10% tax is imposed on a good. Which type of product would be most likely to experience the greatest effect on its equilibrium price as a result?

  • Aone with elastic demand
  • Bone with inelastic demand
  • Cone with infinite elasticity of demand
  • Done with unitary elasticity of demand

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