Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a demand is perfectly inelastic and the government imposes a tax on that good/service, who actually pays for the tax? A. 100% the consumers

If a demand is perfectly inelastic and the government imposes a tax on that good/service, who actually pays for the tax?

A. 100% the consumers

B. it depends on how large the tax is

C. 100% the producers

D. 50/50 between consumers and producers

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Levelling What's Next After Globalization

Authors: Michael O'Sullivan

1st Edition

1541724089, 9781541724082

More Books

Students also viewed these Economics questions