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True or false: the effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.
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True or false: the effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.
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Oct 8, 2018
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True or false: the effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.
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Jihoon Baek
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True. It doesn't matter who the levy falls on, producer or consumer. The elasticity will determine who ends up paying the tax.
James In Indy
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Oct 13, 2018
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