If a tax is imposed on a good with a perfectly inelastic supply,the burden of the tax will be borne

Name: If a tax is imposed on a good with a perfectly inelastic supply,the burden of the tax will be borne
Brand: Quizplus
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Question

Quizplus · Accepted Answer

With perfectly inelastic supply, the quantity supplied of the good remains the same even when the price changes. Therefore, producers cannot shift the burden of the tax onto consumers by raising the price. Instead, they will have to bear the entire burden of the tax themselves.

If a Tax Is Imposed on a Good with a Perfectly