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

Price elasticity of demand — practice question

A government wants to levy a tax on a good so that most of the tax burden is borne by the producer rather than the consumer. Which type of elasticity should the good have in order to make this possible?

  • Ahigh price elasticity of demand
  • Blow price elasticity of demand
  • Ctotally inelastic price elasticity of demand
  • Dunitary price elasticity of demand

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