Asked by
Marco Cabrera
on Oct 12, 2024
Verified
When demand is perfectly elastic the buyer pays _____ of a tax.
A) all
B) most
C) half
D) less than half
E) none
Perfectly Elastic
Describes a situation in economic theory where the quantity demanded or supplied changes infinitely in response to any change in price.
Tax
An enforced economic levy or different levy applied to a taxpayer by a governmental agency intended to provide for government spending and multiple public outlays.
- Discern the specific contexts in which tax liabilities are assumed by buyers or sellers.
- Familiarize oneself with the economic theories behind perfectly elastic and perfectly inelastic demand and supply.
Verified Answer
AK
Learning Objectives
- Discern the specific contexts in which tax liabilities are assumed by buyers or sellers.
- Familiarize oneself with the economic theories behind perfectly elastic and perfectly inelastic demand and supply.