The government of Healthyland imposes a tax on sellers of salt. The tax is $0.10 per pound. With no tax, the price of salt is $0.40 per pound. The demand for salt is perfectly inelastic and the elasticity of supply is 1.5

With the tax, the price of salt paid by buyers in Healthyland is A) $0.40 per pound.
B) $0.45 per pound.
C) $0.35 per pound.
D) $0.50 per pound.


D

Economics

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