Producers will lose no producer surplus due to a tax if supply in their market is perfectly elastic because
A) consumers can effortlessly change their behavior in response to the tax.
B) firms will decide not to pay the tax to the government.
C) the government will decide to tax something else.
D) the amount of the tax is relatively low.
E) producers can effortlessly change their behavior in response to the tax.
Correct Answer:
Verified
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