If the Demand for a Product Is Perfectly Inelastic,the Incidence

question 36

Multiple Choice

If the demand for a product is perfectly inelastic,the incidence of an excise tax will be:

• A)entirely on buyers
• B)mostly on buyers
• C)entirely on sellers
• D)mostly on sellers
• E)neither on buyers nor sellers

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Definitions:

Sketch

A rough or unfinished drawing or painting, often made to assist in making a more finished picture or as a preliminary study.

Graph

A visual representation of data or mathematical functions in a coordinate system, often used for easier interpretation or analysis.

Quadratic Formula

A formula that provides the solutions to a quadratic equation ax^2 + bx + c = 0 as x = (-b ± sqrt(b^2 - 4ac))/(2a).

Maximum Height

The highest point or peak that an object or entity can reach or has reached.