If the government institutes a specific tax for a good that has a perfectly elastic demand curve
A) the producer simply passes the entire tax on to the consumer.
B) the producer must absorb the entire tax.
C) the producer can generally only pass part of the tax onto the consumer.
D) the equilibrium price drops.
Correct Answer:
Verified
Q121: Consumers and firms are known as price
Q122: Which of the following is NOT a
Q123: Which of the following is NOT a
Q124: Which of the following is NOT a
Q125: It is appropriate to use the supply-and
Q126: It is appropriate to use the supply-and-demand
Q127: Which of the following is NOT a
Q129: Which of the following is NOT a
Q143: Costs that pertain to finding a trading
Q150: It is appropriate to use the supply-and-demand
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents