li airline flight that has been overbooked c. public parking d. satellite televi

Question

li airline flight that has been overbooked c. public parking d. satellite television 30. The demand for salt is price inelastic and the supply of salt ia pa tax o elastic and the supply of caviar is price inelastic.Suppose ofcaviar. Who of salt and a tax of $1 per kilogram is levied on the most of these taxes? a. the sellers of salt and the buyers of caviar b. the sellers of salt and the sellers of caviar c. the buyers of salt and the sellers of caviar d. the buyers of salt and the buyers of cav price elastic. The demand for caviar is price that a tax of $1 per kilogram is levied on the sellers buyers o Figure 5-2 Price Snew Quantity 31. Refer to Figure 5-2. What is this market experienci a. a free-rider problem

Explanation / Answer

Solution: buyers of salt and the sellers of caviar

Explanation: In case of essential goods, such as salt the demand of goods is perfect inelasticity, or zero elasticity, thus the most burden of these taxes will fall on buyers. Conversely for caviar is elastic thus the sellers of caviar will share most of the burden.

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