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Which statement below will be true if demand for a product is inelastic and a tax is imposed on it? Producers will not be able

Which statement below will be true if demand for a product is inelastic and a tax is imposed on it?

  • Producers will not be able to raise the price to cover most of the tax.
  • Both consumers and producers will bear the burden of the tax equally.
  • Producers will have to bear most of the burden of the tax.
  • Consumers cannot easily find substitutes.

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