If demand for a product is perfectly inelastic, a tax of $1 per unit imposed on sellers will

Name: If demand for a product is perfectly inelastic, a tax of $1 per unit imposed on sellers will
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When demand is perfectly inelastic, consumers are willing to pay any price for a product because they view it as a necessity or have no substitutes. Therefore, if a tax of $1 per unit is imposed on sellers, the entire tax burden will be passed on to consumers, causing the market price to rise by $1 per unit.

If Demand for a Product Is Perfectly Inelastic, a Tax