Regulatory costs are partially borne by workers when demand

Regulatory costs are partially borne by workers when:

demand is perfectly inelastic.

supply is perfectly elastic.

supply is perfectly inelastic.

none of these.

A.

demand is perfectly inelastic.

B.

supply is perfectly elastic.

C.

supply is perfectly inelastic.

D.

none of these.

Solution

C.

supply is perfectly inelastic.

because in that case supply will not change so in order to maintain demand at same level , this extra cost of regulation is beared by workers partially.

Regulatory costs are partially borne by workers when: demand is perfectly inelastic. supply is perfectly elastic. supply is perfectly inelastic. none of these.

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