Neither the supply of nor demand for a good is perfectly elastic or perfectly inelastic.So,imposing a tax on the good results in a ________ in the price received and kept by sellers and a ________ in the price paid by buyers.

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Quizplus · Accepted Answer

Imposing a tax on a good typically results in a fall in the price received by sellers, as part of the price now goes to the government in the form of tax. For buyers, the price paid rises because the tax often gets passed on to them, increasing the overall cost of the good.

Neither the Supply of nor Demand for a Good Is