The incidence of a tax falls more heavily on: A. Consumers than producers if demand is more inelastic than supply B. Producers than consumers of supply is more inelastic than demand C. Consumers than producers if supply is more elastic than demand D. All of the above are correct

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
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The incidence of a tax falls more heavily on:
A. Consumers than producers if demand is more inelastic than supply
B. Producers than consumers of supply is more inelastic than demand
C. Consumers than producers if supply is more elastic than demand
D. All of the above are correct
Transcribed Image Text:The incidence of a tax falls more heavily on: A. Consumers than producers if demand is more inelastic than supply B. Producers than consumers of supply is more inelastic than demand C. Consumers than producers if supply is more elastic than demand D. All of the above are correct
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