If the demand for insulin is highly inelastic, then the burden of a tax on insulin will be borne almost entirely by sellers.

Question

If the demand for insulin is highly inelastic, then the burden of a tax on insulin will be borne almost entirely by sellers.
🧐 Not the exact question you are looking for?Go ask a question

Solution 1

The statement is incorrect. If the demand for insulin is highly inelastic, then the burden of a tax on insulin will be borne almost entirely by the buyers, not the sellers.

Here's why:

  1. Inelastic demand means that the quantity demanded by consumers does not change significantly when the price c Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

This problem has been solved

Similar Questions

If the demand for insulin is highly inelastic, then the burden of a tax on insulin will be borne almost entirely by sellers.

If a tax is physically paid by sellers, then sellers will always bear the full burden of the tax

The tax burden is mainly borne by the producers if the supply is more elastic than the demand.

If a tax is physically paid by sellers, then sellers bear the full 100% burden of the tax. Group of answer choicesTrueFalse

Assuming a unitary elastic demand and supply, a tax on the sellers of coffee will the equilibrium price of coffee and the equilibrium quantity of coffee.

1/3