Suppose Someone Believes That If a Per-Unit Tax Is Placed

question 92

Multiple Choice

Suppose someone believes that if a per-unit tax is placed on the producers of good Y, the consumers of good Y will end up paying the full tax. This person assumes that the demand curve for good Y is

• A)elastic.
• B)perfectly inelastic.
• C)inelastic.
• D)perfectly elastic.
• E)unit elastic.

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