Economics (AS & A Level) · Oct / Nov 2021 · Paper 13 · Question 14
9708Price elasticity of supply
A government wishes to impose a tax on a good so that the consumer pays most of the tax increase. Which type of elasticity would best achieve this aim?
- Ahigh price elasticity of supply
- Blow price elasticity of supply
- Cunitary price elasticity of supply
- Dperfectly inelastic price elasticity of supply
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Correct answer: A. high price elasticity of supply
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