Question

Suppose the government imposes a tax on three products with differing demand elasticities. Match the product to the group that will most likely bear the incidence of the tax.

a. the government
b. producers
c. consumers and producers
d. consumers

1. highly inelastic
2. somewhat elastic
3. highly elastic

Answer 1

Answer: producer - highly elastic

Consumers and producers - somewhat elastic
Consumers - highly inelastic

government- none

Step-by-step explanation: