The demand for Good X has a price elasticity of −1. If the government decided to impose a sales tax of £3 per unit on Good X this would: A shift the supply curve for Good X up by less than £3 and increase the price by less than £3. B shift the supply curve for Good X up by less than £3 and increase the price by more than £3. C shift the supply curve for Good X up by £3 and increase the price by £3. D shift the supply curve for Good X up by £3 and increase the price by less than £3. May I know why the answer is D for this question? Tq.
