passwella.
Menu

WAEC Economics 1996 Question 33

Question 33

Public Finance

Who bears the greater burden of the indirect tax when the demand for a commodity is inelastic? The

  1. A.wholesaler
  2. B.shareholder
  3. C.retailer
  4. D.consumer
  5. E.entrepreneur
Show the answer and explanation

Answer: D (consumer)

Explanation

With inelastic demand, buyers keep buying when price rises, so most of the tax is passed on to consumers.