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If Demand for a Product Is Perfectly Inelastic, a Tax

Question 28

Multiple Choice

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


A) not affect the market price of the product.
B) cause the market price to rise by $1 per unit.
C) cause the market price to decline by $1 per unit.
D) cause the market price to rise by less than $1 per unit.

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