A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2025 · Q111 Mark
An indirect tax is imposed on good X. Which situation is most likely to result in producers bearing a higher burden of the tax?
Aprice elasticity of demand is elastic
Bprice elasticity of demand is inelastic
Cprice elasticity of supply is elastic
Dprice elasticity of supply is inelastic
✓ Correct answer
A: price elasticity of demand is elastic
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