Economics · May / June 2023 · Paper 11 · Question 21
2281Price elasticity of demand (PED)
A government has introduced a tax on a necessity. Producers have passed on a large proportion of this tax to consumers in the form of higher prices. Which row is correct?
- Adirect; price elastic
- Bdirect; price inelastic
- Cindirect; price elastic
- Dindirect; price inelastic
As printed in the paper
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Correct answer: D. indirect; price inelastic
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