The price elasticity of demand for rice is 2, and the price elasticity of supply of rice is 1.2. What happens if a tax is placed on this good?
A) The quantity of rice demanded will fall to zero.
B) Buyers and sellers will share the tax burden equally.
C) Sellers will have a higher tax incidence than buyers have.
D) Buyers will have a higher tax incidence than sellers have.

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The Answer of The price elasticity of demand for rice is 2, and the price elasticity of supply of rice is 1.2. What happens if a tax is placed on this good?
A) The quantity of rice demanded will fall to zero.
B) Buyers and sellers will share the tax burden equally.
C) Sellers will have a higher tax incidence than buyers have.
D) Buyers will have a higher tax incidence than sellers have.

The Price Elasticity of Demand for Rice Is 2, and the Price