Consider a good whose own price elasticity of demand is -0.5 and price
Consider a good whose own price elasticity of demand is -0.5 and price elasticity of supply is 1.5. The fraction of a specific tax that will be passed through to consumers is ________.
A) 0
B) 0.25
C) 0.5
D) 0.75
E) 1
ANSWER
D
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