The burden of a government tax on a commodity whose demand is inelastic will

ECONOMICS
JAMB 2006

The burden of a government tax on a commodity whose demand is inelastic will

  • A. be borne only by the government
  • B. fall more heavily on consumers
  • C. be shared equally between consumers and producers
  • D. fall more heavily on producers

Correct Answer: B. fall more heavily on consumers



Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *
Add Math
Don't want to keep filling in name and email whenever you make a contribution? Register or login to make contributing easier.