A government wishes to impose a tax on a good so that the producer and not the consumer pays most of the tax increase.
Which level of price elasticity of demand would it be best for the good to have to achieve this aim?
price elasticity of demand is elastic
2 )
price elasticity of demand is inelastic
3 )
price elasticity of demand is perfectly inelastic
4 )
price elasticity of demand is unitary
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