If the Supply Curve Is Perfectly Inelastic, the Burden of a Tax

question 123

Multiple Choice

If the supply curve is perfectly inelastic, the burden of a tax on suppliers is borne:

• A) entirely by the suppliers.
• B) entirely by the consumers.
• C) mostly by the suppliers and partly by the consumers if the demand curve is inelastic.
• D) partly by the suppliers and mostly by the consumers if the demand curve is elastic.

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Definitions:

Social Castes

Distinct levels within a hierarchical social system, where individuals' status is often fixed at birth based on heritage, occupation, or other factors.

Common-Interest Association

A group or organization formed among people who share similar goals, interests, or issues, aiming to pursue collective objectives.

Age Set

A formally established group of people born during a certain time span who move together through the series of age-grade categories.

Age Grade

An organized category of people based on age; all individuals pass through a series of such categories over their lifetime.