What happen if government imposes a tax on the product


Suppose the elasticity of demand for a product is 0 and elasticity for supply is 1. If the government imposes a tax on the product, then

a. because the elasticity of demand is zero, the government collects no revenue from this tax.

b. buyers pay a smaller share of the tax than do sellers but both buyers and sellers pay some of the tax.

c. sellers pay all of the tax

d. buyers pay all of the tax

e. buyers and sellers pay exactly the same share of the tax.

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Microeconomics: What happen if government imposes a tax on the product
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