Multiple Choice
A tax is imposed on orange juice. Under what circumstance will consumers bear the full burden of this tax?
A) when the supply curve for orange juice is perfectly inelastic
B) when the price elasticity of demand for orange juice equals 1.4
C) when the demand for orange juice is perfectly elastic
D) when the demand for orange juice is unit elastic
Correct Answer:
Verified
Correct Answer:
Verified
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