A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2018 · Q141 Mark
A government wishes to impose a tax on a good so that the producer and not the consumer pays most of the tax. Which type of elasticity would it be best for the good to have to achieve this aim?
Ahigh price elasticity of demand
Blow price elasticity of demand
Ctotally inelastic price elasticity of demand
Dunitary price elasticity of demand
✓ Correct answer
A: high price elasticity of demand
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