Where Es is the elasticity of supply and Ed is the own price elasticit
Where Es is the elasticity of supply and Ed is the own price elasticity of demand, the fraction of the tax passed on to consumers in the form of higher prices is
A) Es/(Es-Ed).
B) Ed/(Es-Ed).
C) Es/(Ed-Es).
D) Ed/(Ed-Es).
E) Ed/Es.
ANSWER
A
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