Suppose that the government imposes a tax on producers equal to the value of the externalities imposed by the good or service. A ______________ elastic demand curve means consumers are less responsive to changes in price and the tax burden will fall more heavily on ______________.

a. more; government
b. more; consumers
c. less; producers
d. less; consumers
e. None of the above.


Ans: d. less; consumers

Economics

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