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:

Significance

The importance or meaning of something, especially in terms of its impact or relevance to a specific context or field.

Well-being

The state of being comfortable, healthy, or happy, encompassing physical, mental, and emotional health.

Self-actualization

Bringing to fruition or realizing one’s innate talents and potential, seen as a core drive or necessity in people.

Economic Security

The condition of having stable income or other resources to support a standard of living now and in the foreseeable future.