alleryMatch tax burden: 1. Inelast: p. Buyer 2. Elastic: q. Seller 3. Levy: r. Burden
A1-p, 2-q, 3-r
B1-p, 2-r, 3-q
C1-q, 2-p, 3-r
D1-r, 2-p, 3-q
Answer & Solution
Correct answer: A. 1-p, 2-q, 3-r
Tax incidence falls predominantly on buyers when demand is inelastic and on sellers when consumers have elastic alternatives.
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