Suppose the Demand for a Particular Good Is Perfectly Inelastic

question 116

Multiple Choice

Suppose the demand for a particular good is perfectly inelastic and the government decides to impose a tax on the production of this good. Who will pay the greater share of such a tax?

• A)The buyers will pay the entire share.
• B)The sellers will pay the entire share.
• C)The buyers and the sellers will pay equal shares.
• D)The sellers will bear the greater share of the tax.

---

Definitions:

Red Wine

An alcoholic beverage made from fermented dark-colored grapes.

Suicidal Ideation

The consideration or planning of suicide, typically associated with feelings of depression or hopelessness.

Antidepressant

A type of medication designed to alleviate symptoms of depression by correcting imbalances in neurotransmitters.

Priority Assessment

A systematic approach used in healthcare and other fields to determine the order of importance and urgency among tasks or patients' needs.