Question:

If the government imposes an excise tax in a market in which the supply curve is?

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perfectly inelastic, the burden of the tax will fall completely on the _________ and the deadweight loss will equal ________.

A) consumer; zero

B) producers; zero

C) consumers; the government’s tax revenue

D) producers; the government’s tax revenue

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1 ANSWERS


  1. B) producers; zero

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