The government proposes a tax on flowers in order to boost its revenue. Consumers will bear no part of this tax if the:

Name: The government proposes a tax on flowers in order to boost its revenue. Consumers will bear no part of this tax if the:
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Question

Quizplus · Accepted Answer

If the demand for flowers is perfectly elastic, any increase in price due to the tax will lead to a complete loss of demand. Thus, suppliers will have to bear the entire burden of the tax, and consumers will not be affected.

The Government Proposes a Tax on Flowers in Order to Boost