Answer:
Per Unit specific tax = $3 : Increases price paid by buyers by $3 (if demand is perfectly inelastic) <u>OR</u> Doesn't change buyers' paid price (if supply is perfectly inelastic) <u>OR</u> Partially increases price by <$3 (based on relative demand & supply inelasticity)
Explanation:
Indirect taxes (eg-specific per unit tax) is an example of tax whose incidence & impact fall on different people , burden can be shifted from sellers to buyers .
However burden of a per unit tax is beared by consumers or producers more, depends on relative inelasticity of demand and supply .
If demand is more inelastic , more tax burden is shifted to buyers & if supply is more inelastic , more tax burden is beared by the seller itself .
Reason : Because Elasticity is the responsiveness of buyers demand & sellers supply to product price , more burden is shifted to the economic agent (buyers / sellers) who are less sensitive / more insensitive to change in price for their demand / supply
I actually think this answer it's true
This is an example of.... Libtards... I mean the Democratic system that’s running&ruining this country.
Helps to boost outs comes and productivity.
