Question

​If the demand for apples is highly elastic and the supply is highly inelastic, then if a tax is imposed on apples it will be paid: Question 24 options: ​largely by the sellers of apples. ​largely by the buyers of apples. ​equally by the sellers and buyers of apples. ​by the government.

Answer 1

Answer:​largely by the sellers of apples.

Explanation: A highly elastic Demand is the demand that changes at the slightest increase in the price of a good or service.

A highly inelastic elastic supply is the situation where the supply of goods and services does not change even when the taxes or cost of production of the good or service increases.

When supply is inelastic, the sellers will bear the burden of the increased tax as increasing the price of the apples will cause the customers to look for alternatives.