The buyers pay the entire sales tax levied on a good when demand is perfectly ________ or supply is perfectly ________.

Name: The buyers pay the entire sales tax levied on a good when demand is perfectly ________ or supply is perfectly ________.
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When demand is perfectly inelastic, buyers will pay the entire sales tax because they will buy the same quantity regardless of price changes. When supply is perfectly elastic, sellers will not absorb any of the tax burden, passing it entirely to buyers.

The Buyers Pay the Entire Sales Tax Levied on a Good