The share of the tax borne by seller will be larger

CA Foundation · Business Economics · RTP · May 2025
The share of the tax borne by seller will be larger
(A) A. If the demand for the product is less elastic.
(B) B. If the demand for the product is inelastic.
(C) C. If the demand for the product has greater elasticity.
(D) D. If the elasticity of supply of the product is larger.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. If the demand for the product has greater elasticity.

Topics: Theory of Demand and Supply

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