If a Tax Is Imposed in a Market in Which

question 396

Multiple Choice

If a tax is imposed in a market in which demand is perfectly inelastic

• A) the buyers pay the entire tax.
• B) the sellers pay the entire tax.
• C) the buyers and the sellers both pay a portion of the tax.
• D) neither the buyer nor the seller pays the tax.

---

Definitions:

Trypanosome

A genus of unicellular parasitic flagellate protozoa, some species of which cause diseases such as sleeping sickness in humans and animals.

Sleeping Sickness

A parasitic disease transmitted by the tsetse fly, characterized by fever, headaches, joint pains, and sleep disturbances.

Incomplete Digestive Tract

A type of digestive system where a single opening serves as both mouth and anus, common in simpler organisms like cnidarians and flatworms.

Trachea

In insects, air tube located between the spiracles and the tracheoles. In tetrapod vertebrates, air tube (windpipe) that runs between the larynx and the bronchi.