Asked by Raeanne Prather on Jul 21, 2024
Verified
The seller passes on the entire tax to the consumer when demand is ____.
Elasticity
A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price or other economic factors.
Demand
The desire of purchasers, consumers, or clients for a particular good or service, coupled with the ability and willingness to pay for it.
- Comprehend the function of elasticity in the allocation of tax burden between consumers and producers.
Verified Answer
DM
Learning Objectives
- Comprehend the function of elasticity in the allocation of tax burden between consumers and producers.