A tax on a commodity whose demand is perfectly inelastic will fall heavily on the
a
consumer
b
manufacturer
c
wholesaler
d
retailer
Explanation
Correct Option
aNo explanation available
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bloomboy
2 years ago
Hey B is the right option:
A perfectly inelastic demand means that consumers are willing to buy the same quantity of a good, regardless of its price. This means that a tax imposed on the commodity will have no effect on the quantity demanded, but the price will increase. Since consumers are willing to pay the new, higher price, the tax burden falls on the manufacturer, who must now pay the tax out of their profit

