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If the supply curve is perfectly elastic, then this suggests that the OA. consumers pay a smaller portion of the excise tax. OB. consumer price does not change when an excise tax is added to the sale of a good OC. entire burden of the excise tax is borne by the sellers. OD. sellers absorb a portion of the excise tax. O E. entire burden of the excise tax is borne by the consumers.

If the supply curve is perfectly elastic, then this suggests that the OA. consumers pay a smaller portion of the excise tax. OB. consumer price does not change when an excise tax is added to the sale of a good OC. entire burden of the excise tax is borne by the sellers. OD. sellers absorb a portion of the excise tax. O E. entire burden of the excise tax is borne by the consumers.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If the supply curve is perfectly elastic, then this suggests that the O A. consumers pay a smaller portion of the excise tax. OB. consumer price does not change when an excise tax is added to the sale of a good OC. entire burden of the excise tax is borne by the sellers. O D. sellers absorb a portion of the excise tax. O E. entire burden of the excise tax is borne by the consumers.
Transcribed Image Text:If the supply curve is perfectly elastic, then this suggests that the O A. consumers pay a smaller portion of the excise tax. OB. consumer price does not change when an excise tax is added to the sale of a good OC. entire burden of the excise tax is borne by the sellers. O D. sellers absorb a portion of the excise tax. O E. entire burden of the excise tax is borne by the consumers.
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