Suppose That in a Particular Market,the Supply Curve Is Highly

question 106

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

• A) the buyers will bear a greater burden of the tax than the sellers.
• B) the sellers will bear a greater burden of the tax than the buyers.
• C) the buyers and sellers are likely to share the burden of the tax equally.
• D) the 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.

---

Definitions:

Lusitania

British passenger liner sunk by a German U-boat, May 7, 1915, creating a diplomatic crisis and public outrage at the loss of 128 Americans (roughly 10 percent of the total aboard); Germany agreed to pay reparations, and the United States waited two more years to enter World War I.

William Jennings Bryan

An American orator and politician from Nebraska, known for his advocacy of populism and as a three-time Democratic presidential candidate.

Fourteen Points

A statement of principles for peace used for peace negotiations in order to end World War I, proposed by American President Woodrow Wilson.

Peace Conference

A meeting held with the aim of resolving conflicts and establishing peace between disagreeing or warring parties.