Question: What's the answer QUESTION 29 When a good, such as gasoline, has an inelastic demand and a tax is placed on that good, then the
What's the answer

QUESTION 29 When a good, such as gasoline, has an inelastic demand and a tax is placed on that good, then the decrease in quantity will be small and thus sellers of gasoline will bear most all of the tax incidence. buyers of gasoline bear all of the tax burden because they always purchase the same amount regardless of price. the decrease in quantity will be small and thus the deadweight loss will be small. the decrease in quantity will be significant and a relatively large deadweight will be the result
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