Who bears the greater burden of the indirect tax when the demand for a commodity is inelastic? The

Assessment: WAEC SSCE - Economics - 1996 (Objective) Subject: Economics

Question 1 Report

Who bears the greater burden of the indirect tax when the demand for a commodity is inelastic? The
Answer Details
When the demand for a commodity is inelastic, it means that consumers are not very responsive to changes in price and will continue to purchase the commodity even if the price increases. In this situation, the burden of an indirect tax falls more heavily on the consumers because they are willing to pay the higher price and cannot easily reduce their consumption. Therefore, the correct answer is "consumers".
Read lesson note on Theory Of Price Determination (WAEC)
Read lesson note on The Theory Of Demand (JAMB)
Read lesson note on Economics As A Science (JAMB)
View Answer

Related Questions

1

MUX = PX ( where X and Y = good X and Good Y; MU = Marginal Utility;P= Price)MUY = PY. The above represents the
2

Subsistence agriculture means
3

Farm produce are graded, packed and distributed by
4

The ranking of a consumer’s need in order of importance is termed
5

If price of a commodity rises from N2.00 to N4.00 and its supply increases from 100 to 125, them the co-efficient of elasticity of supply is
6

Localization of industries is
7

Which of the following correctly illustrates the chain of distribution?
8

If as a result of fall in price of the commodity X, the quantity demanded of commodity Y falls, then commodities X and Y are

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning