asked 56.7k views
1 vote
True or false: the effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.

1 Answer

4 votes
True. It doesn't matter who the levy falls on, producer or consumer. The elasticity will determine who ends up paying the tax.
answered
User James In Indy
by
8.1k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.