Price (dollars per pie) 5 4 2 2 4 5 6 Quantity (thousands of pies per week) The demand for apple pies is perfectly elastic. If the government taxes apple pies at $1 a pie, then A) the buyer pays the entire tax. B) the seller pays the entire tax. C) the seller and the buyer split the tax but the seller pays more. who pays the tax depends on whether D) the government imposes the tax on pie buyers or on pie sellers.

Price (dollars per pie) 5 4 2 2 4 5 6 Quantity (thousands of pies per week) The demand for apple pies is perfectly elastic. If the government taxes apple pies at $1 a pie, then A) the buyer pays the entire tax. B) the seller pays the entire tax. C) the seller and the buyer split the tax but the seller pays more. who pays the tax depends on whether D) the government imposes the tax on pie buyers or on pie sellers.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 10PA

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