N2

The Dutch government is planning a new aviation tax on passenger and cargo flights departing from Dutch airports. Passenger flights will pay 7 euros ($8) per passenger, and cargo flights will pay 3.85 euros ($4.30) per ton. Source: AirlineGeeks.com, May 19, 2019 Assuming that the supply of airport services is perfectly elastic, what can we say about the incidence of the Dutch tax on aviation? On the basis of what principle would this tax be fair? Question content area bottom Part 1 If the supply of airport services is perfectly elastic, _______. A. providers of airport services pay all of the tax B. users of airport services pay all of the tax C. providers of airport services and users of airport services equally share the tax D. providers of airport services and users of airport services each pay some of the tax, but providers pay more E. providers of airport services and users of airport services each pay some of the tax, but consumers pay more