A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2009 · Q51 Mark
A government wishes to impose a tax on a good so that the consumer and not the producer pays most of the tax increase. Which type of elasticity would best achieve this aim?
Ahigh price elasticity of supply
Blow price elasticity of supply
Cunitary price elasticity of supply
Dperfectly inelastic price elasticity of supply
✓ Correct answer
A: high price elasticity of supply
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