question consider a market where demand is relatively more inelastic than supply. if the price of a major…

question consider a market where demand is relatively more inelastic than supply. if the price of a major input increases, how will this increase in input costs be split between producers and consumers? select the correct answer below: producers will face a greater portion of the burden of the cost increase than consumers. consumers will face a greater portion of the burden of the cost increase than producers. consumers and producers will face an equal burden of the cost increase. consumers or producers could both face either a higher or lower burden of the cost increase.

question consider a market where demand is relatively more inelastic than supply. if the price of a major input increases, how will this increase in input costs be split between producers and consumers? select the correct answer below: producers will face a greater portion of the burden of the cost increase than consumers. consumers will face a greater portion of the burden of the cost increase than producers. consumers and producers will face an equal burden of the cost increase. consumers or producers could both face either a higher or lower burden of the cost increase.

Answer

Brief Explanations:

When demand is more inelastic than supply, consumers are less responsive to price - changes. Producers can pass on a larger portion of the increase in input costs to consumers.

Answer:

Consumers will face a greater portion of the burden of the cost increase than producers.