question if the supply curve is perfectly inelastic, the burden of a tax on suppliers is borne ________…

question if the supply curve is perfectly inelastic, the burden of a tax on suppliers is borne ________. select the correct answer below: entirely by the suppliers entirely by the consumers mostly by the suppliers and partly by the consumers if the demand curve is inelastic partly by the suppliers and mostly by the consumers if the demand curve is elastic

question if the supply curve is perfectly inelastic, the burden of a tax on suppliers is borne ________. select the correct answer below: entirely by the suppliers entirely by the consumers mostly by the suppliers and partly by the consumers if the demand curve is inelastic partly by the suppliers and mostly by the consumers if the demand curve is elastic

Answer

Brief Explanations:

When supply is perfectly inelastic, suppliers cannot adjust the quantity supplied in response to a tax. So, they bear the entire burden of the tax as they are unable to shift it to consumers by changing the price - quantity relationship.

Answer:

A. entirely by the suppliers