Assume that the demand for coal is more elastic than the supply. A tax on coal will a. increase the price of coal paid by buyers, and sellers bear a smaller burden of the tax b. decrease the price of coal that sellers really get, and sellers have to bear a bigger burden of the tax c. decrease the price of coal paid by buyers, and buyers have to bear a bigger burden of the tax d. increase the price of coal that sellers really get, and buyers bear a smaller burden of the tax
Assume that the demand for coal is more elastic than the supply. A tax on coal will a. increase the price of coal paid by buyers, and sellers bear a smaller burden of the tax b. decrease the price of coal that sellers really get, and sellers have to bear a bigger burden of the tax c. decrease the price of coal paid by buyers, and buyers have to bear a bigger burden of the tax d. increase the price of coal that sellers really get, and buyers bear a smaller burden of the tax
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assume that the
a. |
increase the |
|
b. |
decrease the price of coal that sellers really get, and sellers have to bear a bigger burden of the tax |
|
c. |
decrease the price of coal paid by buyers, and buyers have to bear a bigger burden of the tax |
|
d. |
increase the price of coal that sellers really get, and buyers bear a smaller burden of the tax |
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