If elasticity of demand is 1 and elasticity of supply is 0, what percentage of a...

Question

Question

If elasticity of demand is 1 and elasticity of supply is 0, what percentage of a 10 percent tax will be borne by consumers?

business economics

Answer 1

Answer #1

0%

Because the supply the inelastic. Suppliers will bear all the tax burden not the consumers.

Answer 2

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