If demand is perfectly inelastic, how much of the burden of a one-dollar tax increase would be

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If demand is perfectly inelastic, how much of the burden of a one-dollar tax increase would be borne by the seller, and how much would be borne by the buyer? (Hint: Draw a graph.)

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Posted Date: Jan 11, 2021 08:51 AM

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If demand is perfectly inelastic, how much of the burden of a one-dollar tax increase would be

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Ans Given demand is perfectly inelastic therefore consumer will be ready to buy the f... View the full answer

Fundamentals of Corporate Finance

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