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How a tax burden is divided between consumers and producers is called tax incidence. Consumers bear most of the tax burden when: Group of answer
How a tax burden is divided between consumers and producers is called tax incidence. Consumers bear most of the tax burden when:
Group of answer choices
a. Supply is more elastic than demand.
b. Demand is more elastic than supply
c. The firm decides to pass none of the tax on to the consumer via a higher price.
d. Cross elasticity of demand is .35
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