(Appendix) Suppose That the Supply Curve for a Good Is

question 42

Multiple Choice

(Appendix) Suppose that the supply curve for a good is vertical.In this case we would expect

• A)Nothing to be sold so no tax is collected
• B)A tax placed on the buyer to be borne entirely by the seller
• C)A tax placed on the buyer to be borne entirely by the buyer
• D)The tax to be shared equally by both buyer and seller

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Definitions:

Implied Warranty of Fitness

A legal guarantee that goods sold will meet the specific purpose for which the buyer is purchasing them, even if not explicitly stated.

Implied Warranty of Merchantability

A legal presumption that a product sold will meet the buyer's reasonable expectations of quality and functionality.

Implied Warranty of Title

A legal assumption that a seller has the right to sell a property and that the buyer will not face legal disputes over the title.

Warranty Disclaimers

Statements that limit or exclude the seller's liability for certain defects or failures in products or services.