in a situation where demand is perfectly elastic , imposition of tax on a commodity
ECONOMICS
WAEC 2007
in a situation where demand is perfectly elastic , imposition of tax on a commodity to raise its price will result in
- A. consumers increasing their demand for the product
- B. consumers' demand for the product remaining unchanged
- C. consumers shifting completely to substitute products
- D. suppliers increasing the supply of the product
Correct Answer: C. consumers shifting completely to substitute products
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