If the Market Supply Curve Is Perfectly Elastic and an Excise

question 63

Multiple Choice

If the market supply curve is perfectly elastic and an excise tax is imposed,

• A)all of the tax is paid by buyers
• B)all of the tax is paid by sellers
• C)the tax burden is divided equally between buyers and sellers
• D)the market price will not change
• E)the market price will fall by the amount of the tax

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Definitions:

Inferior Nasal Conchae

A bony structure located within the nasal cavity that helps filter, moisten, and warm air inhalation.

Vomer

A thin, flat bone forming the posterior and inferior portion of the nasal septum, which divides the nasal cavity into two.

External Auditory Canal

The passage leading from the outer ear to the eardrum, transmitting sound waves to the eardrum.

Eardrum

A delicate film that divides the outer from the middle ear, moving in reaction to sound waves.