If the demand for a commodity is perfectly elastic, the incidence of a tax on that commodity will be, other things being equal, entirely on the_______

  • A buyer
  • B seller
  • C government
  • D local authority
jamb 2019economics

The correct answer is B. seller

The seller or producer will bear the whole burden of taxation. Any attempt to increase price will make the demand for the commodity to fall to zero.

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