The price of a good will not be affected by the imposition of a sales tax on it if the?
a
supply is inelastic
b
demand is inelastic
c
supply is perfectly elastic
d
demand is perfectly elastic
Explanation
Correct Option
dNo explanation available
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Discussions (3)

ojobenjamin84
10 years ago
The selected answer is wrong:
The and that is given here is wrong the right answer is (B) ,New system Economic
Public fiance ,incident of tax pg209-210

Deepthinker581
4 years ago
It happens this way in perfectly elastic demand because
When the demand for a good is perfectly elastic, any increase in the price will cause the demand to drop to zero


