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WAEC Economics 2024 Question 41

Question 41

Public Finance

A commodity with perfectly inelastic demand has the burden of tax borne by

  1. A.both the sellers and the buyers.
  2. B.the buyers alone.
  3. C.the government alone.
  4. D.both the buyers and the government.
Show the answer and explanation

Answer: B (the buyers alone.)

Explanation

Buyers purchase the same amount at any price, so the full tax passes to them.