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:

Reconstruction Amendments

The Thirteenth, Fourteenth, and Fifteenth Amendments to the United States Constitution, adopted between 1865 and 1870, which abolished slavery, granted citizenship rights, and protected voting rights regardless of race, respectively.

Citizenship

The status of being a legally recognized subject or national of a state, with specific rights and obligations.

Racial Injustice

Inequitable treatment or discrimination against individuals or groups based on race, affecting opportunities, access to resources, and societal participation.

Colorblindness

The assertion or policy of ignoring racial characteristics, which can overlook systemic inequalities and hinder the recognition of diverse identities.