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:

Leadership

The act of guiding or influencing a group towards achieving a common goal through direction, inspiration, and encouragement.

Peer Contributions

Efforts or input provided by individuals at the same level within an organization or group toward a common goal.

Scientific Method

A systematic, evidence-based approach for conducting research, involving observation, hypothesis formation, experimentation, and conclusion.

Independent Variables

Are presumed causes that influence dependent variables.