Suppose that the government imposes a sales tax on the consumption of natural gas,which of the following would have the least impact on the producers of natural gas?

Question

Quizplus · Accepted Answer

When demand is perfectly inelastic, consumers will continue to purchase natural gas even if the price increases due to the tax. This means that the producers of natural gas will not be negatively impacted as their sales will remain steady.

Suppose That the Government Imposes a Sales Tax on the Consumption