Demand for gasoline is inelastic and supply of gasoline

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The demand for gasoline is inelastic and the supply of gasoline is elastic. Therefore,

A) sellers bear most of the incidence of a tax on gasoline.

B) buyers bear most of the incidence of a tax on gasoline.

C) the government bears most of the incidence of a tax on gasoline.

D) the incidence of a tax on gasoline depends if the tax is imposed on sellers or on buyers.

E) None of the above answers is correct.

Reference no: EM13735501

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