If the supply of a good is perfectly elastic,then a tax on the good will be paid
A)completely by the buyers.
B)completely by the sellers.
C)equally by the buyers and sellers.
D)mostly but not completely by the buyers.
E)mostly but not completely by the sellers.

Question

Quizplus · Accepted Answer

When the supply of a good is perfectly elastic, it means that suppliers are willing to supply any quantity of the good at a particular price. Therefore, if a tax is imposed on such a good, the entire burden of the tax falls on the buyers, as sellers will not accept a lower price than the one at which they are willing to supply.

If the Supply of a Good Is Perfectly Elastic,then a Tax