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Assume that the supply of corn is relatively price inelastic, while the demand for corn is relatively price elastic. If the government imposes a per-unit excise tax on the production of corn, the incidence of the tax will fall
more on sellers than on buyers

Respuesta :

Terms in this set If supply is more inelastic than demand, sellers bear the majority of the tax burden, and demand is more inelastic than supply.

Customers are more likely to reduce their demand rather than increase prices if the demand curve is more elastic.

What will happen to total revenue if there is an inelastic price elasticity of demand?

A decrease in price will result in a decrease in total revenue if demand is inelastic, whereas a rise in price will result in an increase in total revenue. When prices rise or fall, total revenue stays the same if demand is unit elastic. measures how well sellers respond to changes in a product's price.

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