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Suppose That the Government Imposes a Sales Tax on the Consumption

Question 85

Multiple Choice

Suppose that the government imposes a sales tax on the consumption of soda drinks, which of the following would have the least impact on the producers of soda drinks?


A) Perfectly elastic demand
B) Perfectly inelastic demand
C) Unitary elastic demand
D) Zero demand
E) Plastic is an inferior good.

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