Given that the excise duty on a product is fully borne by the buyers, then the magnitude of the price elasticity of demand of that product is
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Given that the excise duty on a product is fully borne by the buyers, then the magnitude of the price elasticity of demand of that product is
Tap an option to check your answer.
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Taxation: incidence and efficiency has come up 79 times in 7 exams since 2009.
This question is on Tax incidence, part of Taxation: incidence and efficiency in Public Economics.
Who actually bears a tax, whoever the law makes pay.
TestStop has 26 past-paper questions on this subtopic.
Question from the UoH 2015 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.