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

question 257

Multiple Choice

Suppose the demand curve for a product is horizontal 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) the tax burden will be shared among the government, buyers and sellers.
• C) buyers bear the entire burden of the tax.
• D) the tax burden will be shared by buyers and sellers.

---

Definitions:

Customer Service

Activities and initiatives designed to support customers by providing helpful information and addressing their concerns or inquiries.

Wisdom

Ability to make good use of knowledge.

Knowledge

Knowing something gained through experience and/or training.

Experiential Learning

A learning process through which individuals gain knowledge by actively engaging in experiences.