Respuesta :
Answer:
B). liquor store
C). customer
Explanation:
The burden or the load of the tax to be payed is very much depended upon the relative elasticities of the demand and supply of the product or the item.
B. When the customers have perfectly demand price elastic, the liquor store will have to pay the tax of 1 dollar because as the customers have a perfectly elastic demand, the increase in the price will definitely reduce a quantity demanded by a large percentage. Thus the seller bears the burden of tax completely.
C. And when the customers have a perfectly demand price inelastic , the increase in the price of liquor have no effect on the quantity demanded. This allows or permits the seller to pass the burden of the tax to the customers. So, the customers pays the $1 tax.
If the main customers of the liquor store are perfect price elastic, the party that pays the sales tax is the liquor store.
If the main customers of the liquor store are perfect price inelastic, the party that pays the sales tax are the main customers.
What is price elasticity?
Price elasticity of demand measures how the quantity demanded changes when the price changes.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
What is perfect price elasticity?
Demand is perfectly price elastic if when there is an increase in the price of the good, the quantity demanded falls to zero.
What is perfect price inelasticity?
Demand is perfectly price inelastic if when there is an increase in the price of the good, there is no change in the quantity demanded.
To learn more about price elasticity, please check: https://brainly.com/question/26035503
