A tax on a commodity whose supply is perfectly inelastic is?
ECONOMICS
JAMB 1990
A tax on a commodity whose supply is perfectly inelastic is?
- A. shifted completely on the consumer
- B. completely borne by the supplier
- C. dividend in the ratio 60;40 between the consumer and the supplier
- D. divided half-and-half between the producer and the consumer
Correct Answer: B. completely borne by the supplier
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