A good has a perfectly inelastic supply and a downward sloping demand curve. Imposing a sales tax of $1 per unit on the sellers of the good
A) raises the price paid by demanders by more than $1.00.
B) raises the price paid by demanders by $1.00.
C) raises the price paid by demanders by less than $1.00.
D) does not change the price paid by demanders.
Correct Answer:
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