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when the government imposes a unit tax on a commodity with perfectly inelastic demand ,...

Economics
WAEC 1997

when the government imposes a unit tax on a commodity with perfectly inelastic demand , the
  • A. tax is borne entirley by the seller
  • B. tax is shared equally between the buyer and the seller
  • C. seller bears 70% and the consumer bears 30% of the tax
  • D. tax is borne entirely by the consumer
  • E. tax is borne by nobody
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Correct Answer: Option D
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