Asked by
Ashlyn Clark
on Oct 12, 2024
Verified
When demand is perfectly inelastic the buyer pays _____ of a tax.
A) all
B) most
C) half
D) less than half
E) none
Perfectly Inelastic
A situation in which the quantity demanded or supplied of a good does not change regardless of changes in its price.
Tax
A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.
- Identify the conditions under which different parties (buyers or sellers) bear the tax burden.
- Absorb the information regarding economic concepts of perfectly elastic and perfectly inelastic demand and supply.
Verified Answer
DT
Learning Objectives
- Identify the conditions under which different parties (buyers or sellers) bear the tax burden.
- Absorb the information regarding economic concepts of perfectly elastic and perfectly inelastic demand and supply.