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

question 26

Multiple Choice

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

• A) entirely on the buyer.
• B) mostly on the buyer.
• C) entirely on the seller.
• D) mostly on the seller.

---

Definitions:

Protons

Subatomic particles found in the nucleus of an atom, with a positive electric charge.

Neutrons

Subatomic particles present in the nucleus of an atom, having no electric charge.

Hydrogen Bond

A feeble connection formed between two molecules through the electrostatic force that attracts a proton in one molecule to an electronegative atom in the other.

Covalently Bonded

Refers to atoms connected by the sharing of pairs of electrons, creating a stable arrangement of atomic components.