Suppose the demand curve for gasoline is more elastic than the supply curve for gasoline.  If the government imposes a tax on gas stations (gasoline sellers), which party (buyers or sellers) will bear more of the tax burden?  How will the tax burden change if the government imposed the tax on gasoline consumers, rather than sellers?

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter6: Elasticity
Section: Chapter Questions
Problem 11QP: Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price...
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Suppose the demand curve for gasoline is more elastic than the supply curve for gasoline.  If the government imposes a tax on gas stations (gasoline sellers), which party (buyers or sellers) will bear more of the tax burden?  How will the tax burden change if the government imposed the tax on gasoline consumers, rather than sellers?

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