If the Demand for a Product Is Perfectly Elastic, a Tax

Multiple Choice

If the demand for a product is perfectly elastic, a tax of $1 per unit imposed on sellers will

A) increase the market price by $1 per unit.
B) increase the market price by less than $1 per unit.
C) decrease the market price by $1 per unit.
D) decrease the market price by less than $1 per unit.
E) not affect the market price.