Business, 07.11.2021 14:30 romaguera06
The demand for medical care is very inelastic. If a 10-percent tax is levied on the sale of medical services and is collected from medical-care providers, then:
A. the incidence of the tax is likely to be borne entirely by medical-care providers.
B. most of the tax is likely to be shifted to those who purchase medical care.
C. the market equilibrium price of medical care will fall.
D. the excess burden of the tax is likely to be very high.
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The demand for medical care is very inelastic. If a 10-percent tax is levied on the sale of medical...
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