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.

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Definitions:

Threat Of Extortion

The act of using threats or intimidation to compel someone to provide money, property, or favors against their will.

Undue Influence

A legal term describing a situation where an individual is able to persuade another's decisions due to the relationship between the two parties, often leading to unfair outcomes.

Duress Of Goods

A situation where goods are obtained or retained through coercion, or the wrongful collection of goods under pressure.

Ethical Policy

A set of guidelines that outlines the principles and values governing the behavior of individuals or organizations.