Suppose That in a Particular Market, the Supply Curve Is

question 35

Multiple Choice

Suppose that in a particular market, the supply curve is highly elastic and the demand curve is highly inelastic. If a tax is imposed in this market, then the

• A)buyers will bear a greater burden of the tax than the sellers.
• B)sellers will bear a greater burden of the tax than the buyers.
• C)buyers and sellers are likely to share the burden of the tax equally.
• D)buyers and sellers will not share the burden equally, but it is impossible to determine who will bear the greater burden of the tax without more information.

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Definitions:

Slash-And-Burn Agriculture

A method of farming that involves cutting and burning plants in a forest or woodland to create fields.

Subsistence Agriculture

Farming practice in which crops are grown only to meet the needs of the farm family.

Consumption

The process in which energy and resources are used, often referring to the intake of food by organisms.

Cattle Ranching

An agricultural practice focused on raising cattle for meat, milk, or other products, typically involving extensive land use for grazing.