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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Definitions:

Collective Action

The action taken together by a group of people with the aim of achieving a common objective.

Lynch Mobs

Groups of people who take the law into their own hands to punish an alleged criminal, typically without a legal trial.

Nonroutine Collective Actions

Unplanned, spontaneous group actions that emerge in response to unforeseen events or crises, diverging from established norms or routines.

Universal Citizenship

The concept that all people have rights and obligations as members of a global community, regardless of their nationality.