If supply of a good is perfectly inelastic, then the sellers of that good are expected to
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“If supply of a good is perfectly inelastic, then the sellers of that good are expected to bear the full revenue burden of an excise tax on the sale or consumption of that good.”
Evaluate this statement. Can you think of any examples of goods whose supply is (at least almost) perfectly inelastic?
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The statement is correct in theory If the supply of a good is perfectly inelastic it means that regardless of the price the quantity supplied remains ...View the full answer
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