If the demand for a good is perfectly inelastic,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 demand is perfectly inelastic, consumers are willing to pay any price for the good, meaning the entire tax burden falls on the buyers as they do not reduce their quantity demanded in response to a price increase.

If the Demand for a Good Is Perfectly Inelastic,then a Tax