When a Good with a Perfectly Inelastic Demand Is Taxed,the

question 148

Multiple Choice

When a good with a perfectly inelastic demand is taxed,the incidence of the tax is borne

• A) entirely by producers.
• B) by consumers and producers equally.
• C) entirely by consumers.
• D) mostly by consumers.
• E) mostly by producers.

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Definitions:

Gain On Equipment

Profit realized from the sale of equipment that is more than its book value.

Robotic Appliances

Machines designed for household chores that are capable of operating autonomously or semi-autonomously.

Finished Goods Inventories

Products that have completed the manufacturing process but have not yet been sold or distributed to customers.

Work In Progress

Inventory that includes goods in the process of being manufactured but not yet completed.