Economics (AS & A Level) · May / June 2025 · Paper 12 · Question 11
9708Methods and effects of government intervention in markets
An indirect tax is imposed on good X. Which situation is most likely to result in producers bearing a higher burden of the tax?
- Aprice elasticity of demand is elastic
- Bprice elasticity of demand is inelastic
- Cprice elasticity of supply is elastic
- Dprice elasticity of supply is inelastic
As printed in the paper
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Correct answer: A. price elasticity of demand is elastic
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