Suppose the government imposes a $15 per month tax on internet service. If the demand curve for internet service is perfectly inelastic, and the supply curve is upward-sloping, the monthly price for internet service will increase by:
A)$5.
B)less than $15.
C)$15.
D)$0.

Question

Quizplus · Accepted Answer

When demand is perfectly inelastic, consumers will bear the entire burden of the tax, leading to a full $15 increase in the monthly price for internet service.

Suppose the Government Imposes a $15 Per Month Tax on Internet