If the Demand Curve for a Good Is Perfectly Inelastic

question 19

True/False

If the demand curve for a good is perfectly inelastic, any commodity tax that is imposed on that market will be entirely paid by the consumer.

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Definitions:

Tee Shirts

A casual garment made of fabric, typically cotton, with a T-shaped body and short sleeves, worn by people of all ages and genders.

Pareto Optimal

A situation where resources are distributed in such a way that improving the condition of one person necessitates disadvantaging at least another individual.

Perfect Competition

A theoretical market structure that includes a large number of small firms, freedom of entry and exit, homogeneity of products, and perfect information.

Goods Distribution

The process of making a product or service available for the consumer or business user who needs it, which can involve transportation, packaging, and delivery.