If demand is perfectly inelastic,the deadweight loss caused by a tax will be zero.

Name: If demand is perfectly inelastic,the deadweight loss caused by a tax will be zero.
Brand: Quizplus
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Quizplus · Accepted Answer

If demand is perfectly inelastic, it means that buyers are willing to pay any price for the good or service, so a tax will simply be passed on to consumers without affecting the quantity demanded. Therefore, there will be no change in producer or consumer surplus, and no deadweight loss.

If Demand Is Perfectly Inelastic,the Deadweight Loss Caused by a Tax