問題詳情

10. Suppose Country A proposes to impose a tax on a good. One report from an economistargues that this tax will increase producers' before-tax total revenue and make the producers bearrelatively more tax burden than consumers. Which following statement is correct for the good?
(A) The price elasticity of demand is 1.8; the price elasticity of supply is 0.8.
(B) The price elasticity of demand is O.9; the price elasticity of supply is 0.3.
(C) The price elasticity of demand is 0.6; the price elasticity of supply is 1.4.
(D) There is not enough information to answer the question.

參考答案