Final answer:
A consumer would bear none of the tax incidence of a quantity tax on a good when the demand for the good is perfectly price inelastic, meaning the price elasticity of demand is zero. In such a scenario, all of the tax burden falls onto the sellers because the quantity demanded by consumers does not change in response to price increases.
This correct answer is c.
Step-by-step explanation:
The statement that a consumer would bear none of the economic incidence of a quantity tax on a good when the demand for that good is perfectly price inelastic is true.
This scenario arises when the price elasticity of demand is zero, meaning that a change in price, no matter how large, results in no change in the quantity demanded.
As a result, consumers continue to purchase the same amount of the good regardless of any tax-induced price increase, and producers cannot pass any of the tax onto consumers.
In the context of tax incidence, this implies that all of the tax burden falls onto the sellers, as consumers will not respond to price changes by reducing their quantity demanded.
Therefore, answer option c, which states 'The demand for the good is perfectly price inelastic', correctly identifies the situation in which a consumer would not bear any of the tax burden.
This correct answer is c.