If the demand for a product is perfectly inelastic and supply is upsloping, a $1 excise tax per unit on suppliers will

Name: If the demand for a product is perfectly inelastic and supply is upsloping, a $1 excise tax per unit on suppliers will
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Quizplus · Accepted Answer

When demand is perfectly inelastic, consumers are willing to pay any price for the product. Therefore, suppliers can pass the entire $1 excise tax onto consumers, raising the price by $1.

If the Demand for a Product Is Perfectly Inelastic and Supply