Who Bears the Burden of an Excise Tax If Demand

question 9

Essay

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

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Definitions:

Living Organisms

Entities that display the characteristics of life, including the ability to grow, reproduce, respond to stimuli, and often, to move.

Homeostasis

A state of internal balance within living organisms, despite changes in external environment.

Energy

The capacity to do work or produce changes within a system, present in various forms such as kinetic, potential, thermal, etc.

Chemicals

Substances produced by or used in a chemical process, often referring to synthetic compounds.