The government imposes a sales tax on hot dogs. The tax would be paid entirely by the hot dog buyers if the

Name: The government imposes a sales tax on hot dogs. The tax would be paid entirely by the hot dog buyers if the
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Quizplus · Accepted Answer

If the supply is perfectly elastic, producers can supply any quantity at a given price, so any tax imposed would be passed entirely to buyers, as producers cannot absorb any of the tax without reducing the quantity supplied.

The Government Imposes a Sales Tax on Hot Dogs