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Suppose Someone Believes That If a Per-Unit Tax Is Placed

Question 92

Multiple Choice

Suppose someone believes that if a per-unit tax is placed on the producers of good Y, the consumers of good Y will end up paying the full tax. This person assumes that the demand curve for good Y is


A) elastic.
B) perfectly inelastic.
C) inelastic.
D) perfectly elastic.
E) unit elastic.

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