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.

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Definitions:

Nystatin

An antifungal medication used to treat fungal infections in the mouth, throat, and other parts of the body.

Oral Candidiasis

A fungal infection in the mouth caused by Candida species, characterized by white patches on the tongue and inside the cheeks.

Swish and Swallow

A method of administering liquid medication, whereby the patient swishes the medication around the mouth and then swallows it, often used for oral thrush or sore throat treatments.

Vitamin B

A group of water-soluble vitamins that play important roles in cell metabolism and energy production.