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

Question

Quizplus · Accepted Answer

If the demand for flowers is perfectly elastic, consumers will not bear any part of the tax burden because they will only buy flowers at a specific price. Any increase in price due to the tax will lead to a complete drop in quantity demanded, forcing suppliers to bear the entire tax burden.

The Government Proposes a Tax on Flowers in Order to Boost