Suppose the supply for toothpicks is perfectly elastic. After imposing a tax, producer surplus _________ and supplier revenue _________. Group of answer choices stays constant; stays constant decreases; stays constant increases; decreases decreases; decreases stays constant; decreases

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Author:N. Gregory Mankiw
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Chapter8: Application: The Cost Of Taxation
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Suppose the supply for toothpicks is perfectly elastic. After imposing a tax, producer surplus _________ and supplier revenue _________. Group of answer choices stays constant; stays constant decreases; stays constant increases; decreases decreases; decreases stays constant; decreases
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