Economics WAEC

When the government imposes a unit tax on a commodity with perfectly inelastic demand, the?

A. tax is borne entirely by the seller
B. tax is shared equally between the buyer and the seller
C. seller bears 70% and the consumer bears 30% of the tax
D. tax is borne entirely by the consumer
E. tax is borne by nobody

Correct Answer:

Option D – tax is borne entirely by the consumer

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