A government wants to levy a tax on a product in such a way that most of the tax burden falls on the producer rather than the consumer. What level of price elasticity of demand should the product have if this objective is to be achieved?
- Aprice elasticity of demand is elastic
- Bprice elasticity of demand is inelastic
- Cprice elasticity of demand is perfectly inelastic
- Dprice elasticity of demand is unitary