Economics (M.Phil./Ph.D.) 2014 Panjab University Entrance Exam With Answers

Practice Mode:
35.

In the case of sales tax on a commodity the incidence of tax will depend on :

A: rate of tax
B: only on its elasticity of supply
C: only on its elasticity of demand
D: both on its elasticity of supply as well as elasticity of demand

The answer is: D

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