The demand for gasoline is inelastic and the supply of


The demand for gasoline is inelastic and the supply of gasoline is elastic. Therefore,

A) sellers bear most of the incidence of a tax on gasoline.

B) buyers bear most of the incidence of a tax on gasoline.

C) the government bears most of the incidence of a tax on gasoline.

D) the incidence of a tax on gasoline depends if the tax is imposed on sellers or on buyers.

E) None of the above answers is correct.

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Business Economics: The demand for gasoline is inelastic and the supply of
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