Suppose the Market Supply Curve for Some Good Is Upward

question 134

Multiple Choice

Suppose the market supply curve for some good is upward sloping.If the imposition of an excise tax causes no change in the equilibrium quantity sold in the market,the good's demand curve must be ________,meaning that the burden of the tax has fallen completely on the ________.

• A)vertical; firms
• B)vertical; consumers
• C)horizontal; firms
• D)horizontal; consumers
• E)unit elastic; government

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Definitions:

Depreciation Expense

A measure of the wearing out, consumption, or other loss of value of a depreciable asset arising from use, effluxion of time, or obsolescence through technology and market changes.

Allocation of Cost

The process of assigning a cost or group of costs to one or more cost objectives, such as projects, functions, or departments.

Straight-Line Depreciation

An arrangement for apportioning the financial burden of a tangible asset equally over its viable years.

Residual Value

The projected value remaining for an asset at the conclusion of its operational lifespan.