Solved

Consumers Will Lose No Consumer Surplus Due to a Tax

Question 15

Multiple Choice

Consumers will lose no consumer surplus due to a tax if demand in their market is perfectly elastic because


A) consumers can effortlessly change their behavior in response to the tax.
B) firms will decide not to pay the tax to the government.
C) the government will decide to tax something else.
D) the amount of the tax is relatively low.
E) producers can effortlessly change their behavior in response to the tax.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions