Answered

9. The demand for cable television is relatively elastic. If the price gets too high, people will rent DVDs or videos instead.

Who is most likely to bear the incidence of a 10 percent tax on cable television?

A. The consumer
B. The producer
C. The consumer and producer equally
D. The government



Answer :

GinnyAnswer

Final answer:

The producer bears the burden of a tax on cable television when demand is relatively elastic due to consumers' price sensitivity.


Explanation:

The producer will bear the incidence of a 10 percent tax on cable television when the demand is relatively elastic. This is because when the demand is elastic, consumers are sensitive to price changes, and the producer cannot easily pass on the tax burden to them.


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https://brainly.com/question/41539984


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