"The tax on insulin in the Philippines is anywhere between 10 and 20 percent. If you are rich and living in the Philippines, this is not a problem, but if you are poor, then insulin becomes something that you cannot afford." Why do buyers care so much about a tax on insulin, a vital daily medicine for those with diabetes?
A) because buyers pay virtually the entire tax on insulin because the demand is almost perfectly inelastic
B) because sellers increase their profit when there is a tax
C) because more insulin can be provided to those in need
D) because the tax incidence is equal between the buyers and sellers

Question

Quizplus · Accepted Answer

Buyers care about the tax on insulin because the demand for insulin is almost perfectly inelastic, meaning that consumers will pay nearly the entire tax since they cannot easily reduce their consumption of this essential medication.

"The Tax on Insulin in the Philippines Is Anywhere Between