Indu dhiman Asked a Question
August 12, 2021 5:38 pmpts 30 pts
Quesuon: dLI TUU Previous Year Solved Papers (PSP)- Economics The whole burden of a tax will be borne by the consumer if The demand for commodity is perfectly elastic and supply IS perfectly inelastic The elasticity of demand for a commodity is same as the elasticity of supply of the commodity The demand for a commodity is inelastic and supply is perfectly elastic The elasticity of demand for a commodity is less than the elasticity of supply of that commodity View Solution The whole burden of a tax will be borne by the consumer if the demand for commodity is perfectly elastic and supply is perfectly inelastic.
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  • Rucha rajesh shingvekar thankyou
    When the supply curve is perfectly elastic (horizontal) or the demand curve is perfectly inelastic (vertical), the whole tax burden will be levied on consumers.
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