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

Price elasticity of demand — practice question

An indirect tax is levied on good X. Which situation is most likely to lead to producers bearing a larger share of the tax burden?

  • Aprice elasticity of demand is elastic
  • Bprice elasticity of demand is inelastic
  • Cprice elasticity of supply is elastic
  • Dprice elasticity of supply is inelastic

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