If the Supply Curve Is Perfectly Inelastic and an Excise

question 38

Multiple Choice

If the supply curve is perfectly inelastic and an excise tax is imposed

• A)all of the tax is paid by buyers
• B)all of the tax is paid by sellers
• C)the market price will rise by the amount of the tax
• D)the market price will fall by the amount of the tax
• E)the tax is divided equally between buyers and sellers

---

Definitions:

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Intentional

Actions or behaviors that are done with purpose or deliberate intent, often reflecting a specific goal or outcome in mind.

Prejudice

A negative prejudgment about a person or group that is irrational, long-lasting, and not based on fact.

Assimilation

The process through which individuals or groups adopt the cultural norms of another group, often losing their original identity or culture.