O-LevelEconomicsThe allocation of resources2281/11 · May/June 2011 · Q91 Mark

In a country where the demand for petrol (gas) is price-inelastic, the incidence of any increase in petrol tax will be mainly on

Athe company that refines the oil.

Bthe motorist who buys the petrol.

Cthe petrol station that sells the petrol.

Dthe wholesale company that stores the petrol.

✓ Correct answer

B: the motorist who buys the petrol.

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2011 Paper 1 Variant 1, question 9.

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