Dan has a much lower elasticity of demand for fish than most other people. Is th

Question

Dan has a much lower elasticity of demand for fish than most other people. Is the incidence of a tax on fish, which is sold in a competitive market, greater for him than for other people? Compared to most other people, the incidence of a tax on fish for Dan will be A. smaller because Dan's demand curve is horizontal. O B. larger because Dan's demand curve is steeper. C. smaller because Dan consumes a lot of fish. D. larger because Dan has a relatively high income. E. larger because Dan is more sensitive to price.

Explanation / Answer

Answer : Option (B)

Larger because Dan's demand curve is steeper

Compared to most other people, the incidence of a tax on fish for Dan will be larger because Dan's demand curve is steeper

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