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    Question

    If demand is more elastic than supply, who will get the larger share of benefits?

    A Producers Correct Answer Incorrect Answer
    B Consumers Correct Answer Incorrect Answer
    C Equal benefit to consumers and producers Correct Answer Incorrect Answer
    D The middle man Correct Answer Incorrect Answer

    Solution

    Consumers - If demand is more elastic than supply, consumers tend to reap larger benefits, such as paying lower prices, from transactions because they have more substitutes available and can respond more to price changes.

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