Whoever has high price elasticity will have higher tax burden or subsidy benefit. Shortage of price ceiling and surplus of price floor will become more significant in the long run than in the short run.
a) True, high price elasticity leads to higher tax burden or subsidy benefit
b) False, high price elasticity has no impact on tax burden or subsidy benefit
c) True, shortage of price ceiling and surplus of price floor are more severe in the long run
d) False, shortage of price ceiling and surplus of price floor are less severe in the long run