If supply is perfectly elastic why do the buyers pay the full tax even though the tax may be placed entirely on the sellers?

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If supply is perfectly elastic, then a supplier will only produce the product at a certain price. If the price were to fall, the supply would essentially be zero, as the supplier would not make any money. This means that the producer is driven to pass the tax burden off to the buyer in order to maintain their profit. If the producer keeps the tax burden, they will go out of business because they have no "wiggle room" with the price of their product.

Assuming that government regulations allow the producer to do so, they will therefore pass off their own tax burdens in order to maintain their ability to stay in business as a producer in the perfectly elastic supply scenario.

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When a product is perfectly elastic, this means that a supplier is willing to produce that product at a certain price. If that price decreases by any amount, the supply of that product will be zero. Although perfect elasticity places the tax burden entirely on the seller, the seller must pass the tax burden on to the consumer in order to return a profit. Normally, a seller is mandated to pay sales taxes as well as collect sales taxes from consumers at the time of purchase. Sales taxes are mandated at the state government level. Therefore, if a state's tax regulations allow the seller to pass the tax on to the consumer rather than the seller pay the taxes, the seller is legally allowed to do so.

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Perfectly elastic supply means that if the price of the product goes down, suppliers will not supply any (because they won't make any money) but if the price goes up, they will supply essentially an infinite amount. In such a case, let's imagine a sales tax is imposed on that product. If the seller bears the burden of the tax, they will go out of business because they are already operating at a point where any loss in profit means that they will be losing money (so they're making zero economic profit and if things get worse, they lose money). In this situation, if you get a new tax you, as the supplier, must pass the cost on to your customers or you will have to go broke.
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