試題詳解

10. Suppose Country A proposes to impose a tax on a good. One report from an economist argues that this tax will increase producers' before-tax total revenue and make the producers bear relatively more tax burden than consumers. Which following statement is correct for the good?
(A) The price elasticity of demand is 1.8； the price elasticity of supply is 0.8.
(B) The price elasticity of demand is O.9； the price elasticity of supply is 0.3.
(C) The price elasticity of demand is 0.6； the price elasticity of supply is 1.4.
(D) There is not enough information to answer the question.