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

question 208

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 government.

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Definitions:

Civil Disobedience

A form of protest where individuals refuse to obey certain laws, norms, or commands of a government or occupying power without resorting to physical violence, to bring about change.

Raises Awareness

The act of bringing a specific issue or cause to the attention of the public or a certain group to generate interest or support.

Law's Punishment

The penalties or sanctions imposed by a legal system on individuals or entities found guilty of violating laws.

Co-optation

A strategy by which a group assimilates or takes over elements of another, often to neutralize or gain support.