If demand is perfectly elastic, a sales tax is paid by

Name: If demand is perfectly elastic, a sales tax is paid by
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When demand is perfectly elastic, consumers are very sensitive to price changes and will not purchase the good if the price increases. Therefore, sellers cannot pass on any part of the tax to buyers and must bear the entire burden of the tax themselves.

If Demand Is Perfectly Elastic, a Sales Tax Is Paid