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The Government Proposes a Tax on Flowers in Order to Boost

Question 76

Multiple Choice

The government proposes a tax on flowers in order to boost its revenue. Under what circumstances will consumers bear all of this tax?


A) when the demand for flowers is perfectly elastic
B) when the demand for flowers is perfectly inelastic
C) when the supply of flowers is unit elastic
D) when the supply of flowers is perfectly inelastic

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