A Good Has a Perfectly Inelastic Supply and a Downward-

question 16

Multiple Choice

A good has a perfectly inelastic supply and a downward- sloping demand curve. Imposing a sales tax of $1 per unit on the sellers of the good

• A) raises the price paid by demanders by $1.00.
• B) raises the price paid by demanders by more than $1.00.
• C) raises the price paid by demanders by less than $1.00.
• D) does not change the price paid by demanders.

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