A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2016 · Q151 Mark
A 10% tax is placed on a good. What type of product would be most likely to face the biggest impact on its equilibrium price as a result?
Aone with elastic demand
Bone with inelastic demand
Cone with infinite elasticity of demand
Done with unitary elasticity of demand
✓ Correct answer
B: one with inelastic demand
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