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

question 208

Multiple Choice

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

• A) sellers bear the entire burden of the tax.
• B) buyers bear the entire burden of the tax.
• C) the tax burden will be shared equally between buyers and sellers.
• D) buyers share the burden of the tax with government.

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Definitions:

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, a key mechanism of evolution.

Heritable Characteristics

Traits or characteristics of an organism that can be passed from parent to offspring through genes.

Survival Advantage

Refers to biological or psychological traits that increase an organism's chances of surviving and reproducing in a particular environment.

Nervous System

The system of neurons and neural pathways that convey nerve signals across the body, orchestrating its functions and processing sensory data.