If demand in a perfectly competitive market is perfectly inelastic and supply is upward sloping, a specific tax placed on suppliers will
a. be paid entirely by consumers, and there will be a deadweight loss.
b. be paid entirely by suppliers, and there will be a deadweight loss.
c. be paid entirely by consumers, and there will be no deadweight loss.
d. be paid entirely by suppliers, and there will be no deadweight loss.
e. be paid partly by suppliers and partly by consumers, and there will be a deadweight loss.
the correct answer is c. so why there will be no dwl?
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If demand in a perfectly competitive market is perfectly inelastic and supply is upward sloping, a s...
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