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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