Demand is relatively elastic-supply is relatively inelastic

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All else equal, if demand is relatively elastic and supply is relatively inelastic, a tax on a product will cause:

a. buyers to bear a larger portion of the tax burden.

b. sellers to bear a larger portion of the tax burden.

c. buyers and sellers to share the tax burden equally.

d. It is impossible to tell from this information who will bear the greater tax burden.

Reference no: EM13998365

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