If the demand for a product is perfectly elastic, a tax of $1 per unit imposed on sellers will a. Increase the market price by $1 per unit. b. decrease the market price by less than $1 per unit. c. decrease the market price by $1 per unit. d. not affect the market price. e. Increase the market price by less than $1 per unit.

If the demand for a product is perfectly elastic, a tax of $1 per unit imposed on sellers will a. Increase the market price by $1 per unit. b. decrease the market price by less than $1 per unit. c. decrease the market price by $1 per unit. d. not affect the market price. e. Increase the market price by less than $1 per unit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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