A tax is imposed on wine. Sellers will bear the full burden of this tax if the:

Name: A tax is imposed on wine. Sellers will bear the full burden of this tax if the:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the supply for wine is perfectly inelastic, it means that sellers cannot adjust the quantity supplied in response to price changes. Therefore, if a tax is imposed, sellers would have to bear the full burden of the tax, as they cannot pass any of it onto consumers through price increases.

A Tax Is Imposed on Wine