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?

A. 0 Percent B. 100 percent C. 10 percent D. 50 percent

business economics

Answer 1

Answer #1

Elasticity of supply is 0 meaning that supply is perfectly inelastic. So the whole burden of tax will be borne by sellers.

A. 0 percent

Answer 2

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