WAEC Economics 2024 Objective — Question 41
Question 41 of 50 from the West African Examinations Council (WAEC) Economics 2024 Objective paper, with the correct answer and a full explanation.
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41. A commodity with perfectly inelastic demand has the burden of tax borne by
- A. both the sellers and the buyers.
- B. the buyers alone.Correct
- C. the government alone.
- D. both the buyers and the government.
Explanation
If the price elasticity of demand for a product is perfectly inelastic, the buyers bear the entire burden of the tax alone.
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