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MMLU / A tax imposed on a supplier will more likely be passed on to the consumer in the…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A tax imposed on a supplier will more likely be passed on to the consumer in the form of price increase if

choices

  1. price elasticity of demand is highly elastic.
  2. price elasticity of demand is highly inelastic.
  3. price elasticity of demand is unit elastic.
  4. wage elasticity of demand is highly elastic.

subject

high_school_microeconomics

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Source and history

Official source

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