passwella.
Menu

WAEC Economics 2001 Question 43

Question 43

Public Finance

A greater burden of tax on a product with high price elasticity of demand rests mainly on the

  1. A.producer
  2. B.teacher
  3. C.civil servant
  4. D.middlemen.
Show the answer and explanation

Answer: A (producer)

Explanation

If demand is elastic, raising price would lose many buyers, so the producer must absorb most of the tax.