If government imposes an excise tax on a good and the tax burden is bo

If government imposes an excise tax on a good and the tax burden is borne equally by buyers and sellers, then

A) price elasticity of demand is unitary.
B) price elasticity of supply is unitary.
C) the absolute values of price elasticities of demand and supply are equal.
D) None of the above

 

ANSWER

C

 

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