Answer:
d. not affect the market price.
Step-by-step explanation:
here are the options to this question :
a. Increase the market price by $1 per unit.
b. decrease the market price by less than $1 per unit.
c. decrease the market price by $1 per unit.
d. not affect the market price.
e. increase the market price by less than $1 per unit
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the demand for a product is perfectly elastic, if the price of the good changes, the quantity demanded would fall to zero. So, if tax is imposed on the good, the sellers would bear the entire burden of the tax and there would be no increase in price of the good