If a Tax Is Imposed on a Good with a Perfectly

question 46

Multiple Choice

If a tax is imposed on a good with a perfectly elastic supply,the burden of the tax will be borne

• A) by both consumers and producers equally.
• B) by consumers alone.
• C) by producers alone.
• D) mostly by consumers but partially by producers.
• E) mostly by producers but partially by consumers.

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Definitions:

Original Offer

The initial proposal or terms presented by one party to another during negotiations for a contract or agreement.

Terms

In a legal contract, terms are the specific details, conditions, and stipulations that are agreed upon by the parties involved.

Catalogue Price

The price of items as listed in a catalogue, often suggesting retail pricing before any discounts.

Offer to Purchase

A formal proposal to buy a property or asset, typically including terms and price.