Suppose that a $1 tax is imposed on every unit of the good and the after tax price that consumers pay increases by $1. S

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answerhappygod
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Suppose that a $1 tax is imposed on every unit of the good and the after tax price that consumers pay increases by $1. S

Post by answerhappygod »

Suppose that a $1 tax is imposed on every unit of the good and
the after tax price that
consumers pay increases by $1. Such a situation will occur if the
____.
A) demand is perfectly elastic
B) demand is unit elastic
C) demand is perfectly inelastic
D) demand is more inelastic than supply
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