Question

assume that the supply of corn is relatively price inelastic, while the demand for corn is relatively price elastic. if the government imposes a per-unit excise tax on the production of corn, the incidence of the tax will fall responses entirely on buyers entirely on buyers more on buyers than on sellers more on buyers than on sellers entirely on sellers entirely on sellers more on sellers than on buyers more on sellers than on buyers equally on both buyers and sellers

Answer 1

“Inelasticity” is an economic term that refers to static quantities of goods or services as prices change. Inelastic demand means that consumers' buying habits stay roughly the same when prices rise and consumers' buying habits stay roughly the same when prices fall.

The price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the quotient is greater than or equal to 1, demand is said to be elastic. If the value is less than 1, the demand is considered inelastic.

Elastic Demand is used to describe scenarios where changes in demand are sensitive to small changes in price. For example, if we see a big change in the price of Lays chips, consumers are more likely to switch to a different brand, causing a drop in demand. And vice versa.

Learn more about Inelastic demand  here:

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