Question

Consumers will pay the full tax that is placed on the sellers of a good if demand is __________ or supply is __________.

Answer 1

Answer:

Perfectly inelastic, Perfectly elastic

Explanation:

Consumers will pay the full tax that is placed on the sellers of a good if demand is Perfectly inelastic or supply is Perfectly elastic. The reason for this is that the complete tax burden is borne by a perfectly inelastic side and no tax burden falls on the perfectly elastic side of a transaction.