If Demand Is Perfectly Inelastic and the Supply Curve Is

question 195

Multiple Choice

If demand is perfectly inelastic and the supply curve is upward-sloping,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.