If the Demand Curve Is Downward-Sloping and Supply Is Perfectly

question 272

Multiple Choice

If the demand curve is downward-sloping and supply is perfectly elastic,then the burden of an excise tax is:

• A)borne entirely by consumers.
• B)borne entirely by producers.
• C)shared by consumers and producers,with the burden falling mainly on consumers.
• D)shared by consumers and producers,with the burden falling mainly on producers.

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