If the Demand Curve Is Perfectly Elastic, the Burden of a Tax

question 102

Multiple Choice

If the demand curve is perfectly elastic, 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 supply curve is inelastic.
• D) partly by the suppliers and mostly by the consumers if the supply curve is elastic.

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Definitions:

Mortality

The state of being subject to death.

Age

The length of time that a person has lived or a thing has existed.

Ethnicity

A category of people identified with each other through a shared heritage, culture, language, or common ancestry.

Biomedical Model

A system of medicine that emphasizes the diagnosis and treatment of disease through the application of scientific principles.