--%>

Determine price elasticity of perfectly elastic demand

A city government trying to pass an excise tax for that the economic burden would be borne strictly through the seller will succeed when this imposes a tax on a good for that the price elasticity of: (i) demand is unitarily elastic. (ii) supply is relatively elastic. (iii) demand is perfectly inelastic. (iv) supply is relatively inelastic. (v) demand is perfectly elastic.

Please choose the right answer from above...I want your suggestion for the same.

   Related Questions in Microeconomics

  • Q : Road charging-an end to congestion

    ‘State the economic arguments on whether big cities which have congested roads must charge a road tax?’

  • Q : Monopolistic exploitation of workers

    When a firm hires workers to a point where VMP > MRP = MFC = W then: (1) There is a bilateral monopoly condition. (2) Wage discrimination is being exercised. (3) There is monopolistic exploitation of the workers. (4) The firm consists of monopsony power.

  • Q : Minimum value of investment multiplier

    Minimum value of investment multiplier: Investment multiplier K=1/1-mpcWhen mpc = 0 then K=1/1-0 = 1 that is the minimum value of investment multiplier

  • Q : Problem on numbers of Buyers Even when

    Even when each household’s demand curve didn’t shift, the market demand for the butter would increase if there were a raise in: (1) House-hold income. (2) People’s preferences for the butter. (3) Population. (4) Price of margarine.

  • Q : Social opportunity cost of resource

    Economic rent is: (w) income received by a factor owner in excess of the social opportunity cost of supplying the resource. (x) the difference between a firm’s revenues and the sum of the fixed and variable costs of production. (y) a form of eco

  • Q : Problem on Analytic Time-Long Run Can

    Can someone please help me in finding out the accurate answer from the following question. The length of time needed for a firm to reach the long run is: (i) One year. (ii) Five years. (iii) Ten years. (iv) Variable and depend on the easiness of purchasing or selling

  • Q : Diseconomies of scale problem Can

    Can someone help me in finding out the right answer from the given options. When the average production costs rise as the total production of a firm rises, the firm is experiencing: (1) economies of scale. (2) Economies of scope. (3) Diseconomies of scope. (4) Disecon

  • Q : Strategies of monopolistic competitors

    The strategies of monopolistic competitors invariably comprise: (1) industrial espionage. (2) predatory pricing. (3) product differentiation. (4) price-fixing. (5) cutthroat competition. I need a good answer on the

  • Q : Technological advancement influencing

    Describe how technological advancement influence the supply of specific product.

  • Q : Buying and selling cost in monetary

    Additionally to monetary prices, there the costs of buying and selling comprise: (w) wage payments. (x) monopoly profits. (y) transaction costs. (z) social benefits. How can I solve my economics pr