If Demand Is Perfectly Inelastic and the Supply Curve Is

question 195

Multiple Choice

If demand is perfectly inelastic and the supply curve is upward-sloping,then the burden of an excise tax is:

• A)borne entirely by consumers.
• B)borne entirely by producers.
• C)shared by consumers and producers,with the burden falling mainly on consumers.
• D)shared by consumers and producers,with the burden falling mainly on producers.

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Definitions:

Duty

An obligation often enforced by law, morality, or protocol, requiring individuals or entities to act or refrain from acting in certain ways.

Ethics

Moral principles that govern a person's behavior or the conducting of an activity.

Law

A system of rules that are created and enforced through social or governmental institutions to regulate behavior, with its precise definition being a matter of longstanding debate.

Citizens United

A landmark U.S. Supreme Court case that ruled the First Amendment prohibits government from restricting independent political expenditures by corporations and unions.