Multiple Choice
If the government eliminates a tax on a good with a perfectly elastic supply, who benefits most?
A) Buyers
B) Buyers if the demand is also perfectly elastic, otherwise sellers
C) Sellers
D) Buyers if the demand is unit elastic, otherwise sellers
E) Buyers and sellers benefit equally.
Correct Answer:
Verified
Related Questions
Q33: Q34: The supply of sand is perfectly inelastic Q35: For a given elasticity of demand, the Q36: A $2.00 increase in the size of Q37: Suppose the elasticity of demand for takeaway Q39: Suppose the elasticity of demand for a![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents