Suppose the Demand Curve for a Product Is Horizontal and the Supply

question 80

Multiple Choice

Suppose the demand curve for a product is horizontal and the supply curve is upward sloping.If a per-unit tax is imposed in the market for this product,

• A)sellers bear the entire burden of the tax.
• B)the tax burden will be shared among the government, buyers, and sellers.
• C)buyers bear the entire burden of the tax.
• D)the tax burden will be shared by buyers and sellers.

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Harm caused to the natural environment, often due to human activities, leading to degradation of ecosystems and loss of biodiversity.

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