If a commodity has a(n)_____,a greater share of the burden of an excise tax levied on the commodity would be borne by the consumers.
A)perfectly elastic demand curve and an elastic supply curve
B)perfectly elastic demand curve and perfectly inelastic supply curve
C)relatively inelastic supply curve
D)perfectly inelastic demand curve

Question

Quizplus · Accepted Answer

When demand is perfectly inelastic, consumers are willing to buy the same quantity regardless of the price. Therefore, if an excise tax is levied, consumers will bear the full burden of the tax since their demand does not decrease with an increase in price.

If a Commodity Has A(n)_____,a Greater Share of the Burden