Who Bears the Burden of an Excise Tax If Demand

question 213

Essay

Who bears the burden of an excise tax if demand is perfectly inelastic? What if supply is perfectly inelastic? Use graphs in your explanation.

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Definitions:

Monozygotic Twins

are twins that originate from the splitting of a single fertilized egg, making them genetically identical.

Dizygotic Twins

Also known as fraternal twins, are siblings born at the same time but from separate eggs fertilized by different sperm.

Siblings

Brothers or sisters; individuals having one or both parents in common.

Natural Selection

The evolutionary process by which organisms better adapted to their environment tend to survive and produce more offspring.