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

question 179

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 the government.

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