When the government imposes a specific tax on the sale of a good or service

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    the more elastic the demand for the good, the higher the proportion of the tax the consumer will pay.
     the tax will be split evenly between buyers and seller regardless of the price elasticity of demand.
     the more inelastic the demand for the good, the higher the proportion of the tax the consumer will pay.
     the more inelastic the demand for the good, the higher the proportion of the tax the seller will pay.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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the more inelastic the demand for the good, the higher the proportion of the tax the consumer will pay.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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