When an excise tax is collected from sellers of a product, Ask an Expert

Economics

When an excise tax is collected from sellers of a product with relatively inelastic demand, which of the following occurs?

Less revenue is collected than if the demand were elastic.

Most of the tax is avoided through product substitution by consumers.

Most of the tax burden is borne by the purchasers.

Most of the tax burden is borne by the suppliers.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91368164

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