Suppose the demand for good X is perfectly inelastic and a tax is levied on the producers of each unit.Which of the following is a result of this tax?
A.Consumers pay the entire tax, and deadweight loss will occur because the equilibrium quantity of good X falls.
B.Consumers pay the entire tax, and there is no deadweight loss because the equilibrium quantity of good X remains constant.
C.Consumers and producers share the burden of the tax, and there is no deadweight loss because the equilibrium quantity of good X remains constant.
D.Producers pay the entire tax, and deadweight loss will occur because the equilibrium quantity of good X falls.

Question

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The Answer of Suppose the demand for good X is perfectly inelastic and a tax is levied on the producers of each unit.Which of the following is a result of this tax?
A.Consumers pay the entire tax, and deadweight loss will occur because the equilibrium quantity of good X falls.
B.Consumers pay the entire tax, and there is no deadweight loss because the equilibrium quantity of good X remains constant.
C.Consumers and producers share the burden of the tax, and there is no deadweight loss because the equilibrium quantity of good X remains constant.
D.Producers pay the entire tax, and deadweight loss will occur because the equilibrium quantity of good X falls.

Suppose the Demand for Good X Is Perfectly Inelastic and a Tax