when the government imposes a unit tax on a commodity with perfectly inelastic demand ,
ECONOMICS
WAEC 1997
when the government imposes a unit tax on a commodity with perfectly inelastic demand , the
- A. tax is borne entirley by the seller
- B. tax is shared equally between the buyer and the seller
- C. seller bears 70% and the consumer bears 30% of the tax
- D. tax is borne entirely by the consumer
Correct Answer: D. tax is borne entirely by the consumer
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