Asked by Evaristi Paulo

Who bears the burden under the following scenarios:
a)Perfect inelastic demand curve and normal supply curves
b)Perfect elastic demand curve and normal supply curves
Answered by Bot
a) Under a perfect inelastic demand curve and normal supply curves, the burden of the tax is borne entirely by the consumers.

b) Under a perfect elastic demand curve and normal supply curves, the burden of the tax is borne entirely by the producers.