Suppose that the demand for insulin is perfectly inelastic with respect to price. If a tax of $3 per vial of insulin sold, then price would: fall, but by less than $3, and there would be some reduction in the quantity bought and sold. rise by the full $3, and there could definitely be a reduction in the quantity bought and sold. rise, but by less than $3, and there would be some reduction in the quantity bought and sold. rise by the full $3, but there would be no reduction in the quantity bought and sold. rise, but by less than $3, and there would be no reduction in the quantity bought and sold.
Question 25
Suppose that the demand for insulin is perfectly inelastic with respect to
fall, but by less than $3, and there would be some reduction in the quantity bought and sold.
rise by the full $3, and there could definitely be a reduction in the quantity bought and sold.
rise, but by less than $3, and there would be some reduction in the quantity bought and sold.
rise by the full $3, but there would be no reduction in the quantity bought and sold.
rise, but by less than $3, and there would be no reduction in the quantity bought and sold.
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