Suppose the Demand Curve for a Good Is Highly Elastic

question 33

Multiple Choice

Suppose the demand curve for a good is highly elastic and the supply curve is highly inelastic. If the government taxes this good,

• A) buyers and sellers will each share 50 percent of the burden, regardless of the elasticities of the demand and supply curves.
• B) sellers will bear a larger share of the tax burden.
• C) the distribution of the burden will depend upon whether the buyers or the sellers are required to send the tax to the government.
• D) buyers will bear a larger share of the tax burden.

---

Definitions:

Net Productivity

is the rate at which energy or biomass accumulates in an ecosystem's producers, after subtracting the energy used in respiration, representing the amount of new biological material.

Mineral Release

The process by which minerals become available to organisms in the environment, often through the weathering of rocks or decomposition of organic matter.

Sulfates

Compounds that contain the sulfate ion, SO4^2-, known for their role in atmospheric processes and potential to cause acid rain.

Biological Diversity

The variety of life in all its forms and levels of organization, including ecosystem, species, and genetic diversity.