Question

Let the price elasticity of supply for a good be 2.0, and the absolute value of the price elasticity of demand be -1.5. Which of the following is true in this case?a. Producers carry the majority of the tax burdenb. consumers carry the majority of the tax burdenc. producers and consumers carry an equal amount of the tax burdend. consumers carry the entire tax

Answer 1

consumers carry the majority of the tax burden.

Step-by-step explanation: