The incidence of a tax:
A. falls entirely on consumers if demand is perfectly elastic.
B. falls entirely on consumers if demand is perfectly inelastic.
C. is shared by suppliers and consumers if demand is perfectly elastic.
D. falls entirely on suppliers if demand is perfectly inelastic.
B. falls entirely on consumers if demand is perfectly inelastic.
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Many individuals are reluctant to buy common stock is that as owners of a corporation they have unlimited liability for the debts of the business.
Answer the following statement true (T) or false (F)
Why do cartels tend to break up?
What will be an ideal response?
In a coin toss bet, where both heads and tails are equally likely, you win a $3 on heads but lose $1 on tails. The expected value of the bet is
a. $0.50 b. -$0.50 c. $1.00 d. $0.00
If a 20 percent increase in the price of a good results in a 60 percent increase in the demand for another good, what is the cross-price elasticity of demand?
a. +3 b. –3 c. +80 d. –40