When a good with a perfectly inelastic demand is taxed, the incidence of the tax is borne:

A. by consumers and producers equally.
B. mostly by producers.
C. entirely by consumers.
D. mostly by consumers.
E. entirely by producers.

The goods with a perfectly inelastic demand with any changes in the prices of the commodities are generally have no effect on the demand for a good. This means that if there is an imposition of tax on the good with a perfectly inelastic demand then this will lead to increase the price level by the full amount and therefore, the incidence of this tax is fully borne by the consumers.

When a good with a perfectly inelastic demand is taxed, the incidence of the tax is borne: A. by consumers and producers equally. B. mostly by producers. C. entirely by consumers. D. mostly by consumers. E. entirely by producers.

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When a good with a perfectly inelastic demand is taxed, the incidence of the tax is borne:

A. by consumers and producers equally.
B. mostly by producers.
C. entirely by consumers.
D. mostly by consumers.
E. entirely by producers.