Suppose the government imposes a $10 per month tax on cell phone service.If the demand curve for cell phone service is perfectly inelastic and the supply curve is upward sloping, the price that consumers each month pay for cell phone service will increase by:
A.$5.
B.less than $10.
C.$10.
D.$0.

Question

Quizplus · Accepted Answer

The Answer of Suppose the government imposes a $10 per month tax on cell phone service.If the demand curve for cell phone service is perfectly inelastic and the supply curve is upward sloping, the price that consumers each month pay for cell phone service will increase by:
A.$5.
B.less than $10.
C.$10.
D.$0.

Suppose the Government Imposes a $10 Per Month Tax on Cell