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A Tax Is Imposed on Orange Juice

Question 126

Multiple Choice

A tax is imposed on orange juice. Consumers will bear more of the burden of the tax:


A) ​If the demand for orange juice is relatively inelastic and the supply is relatively elastic.
B) ​If the demand for orange juice is relatively elastic and the supply is relatively inelastic.
C) ​If the supply for orange juice is perfectly inelastic.
D) ​none of the above

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