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Elasticity and Taxes
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Problem 10
Elasticity and Taxes
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6. Introduction to Taxes / Elasticity and Taxes / Problem 10
Problem 10
Why do consumers of life-saving drugs bear a higher tax burden?
A
Because the supply of life-saving drugs is elastic.
B
Because the demand for life-saving drugs is inelastic.
C
Because the demand for life-saving drugs is elastic.
D
Because the government subsidizes these drugs.
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