If the Demand Curve for a Product Is Vertical, Then

question 33

Multiple Choice

If the demand curve for a product is vertical, then

• A)consumers will refuse to bear any share of tax burden.
• B)producers will bear the larger share of the tax burden.
• C)consumers will bear the entire tax burden.
• D)producers and consumers will equally share the tax burden.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that has a feature where missed dividend payments accumulate and must be paid out before dividends can be issued to other stock types.

Outstanding Shares

Represents the total shares of a corporation’s stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares rather than cash.

Market Value

The contemporary rate at which a marketplace allows the purchase or sale of an asset or service.