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 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.
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