If the elasticity of supply for a good is greater than the government expected:
A)Consumers will bear more of the burden of the tax than the government expected.
B)Producers will bear more of the burden of the tax than the government expected.
C)The tax will raise more revenue than the government expected.
D)Both a. and c. are true.

Question

Quizplus · Accepted Answer

If the elasticity of supply is greater than expected, producers can more easily adjust their production in response to the tax, shifting more of the tax burden onto consumers.

If the Elasticity of Supply for a Good Is Greater