If the Demand Curve Is Downward-Sloping and Supply Is Perfectly

question 272

Multiple Choice

If the demand curve is downward-sloping and supply is perfectly elastic,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:

Ribs

Bones that form the rib cage, designed to protect thoracic organs, such as the heart and lungs, and support the upper body.

Sternum

The long flat bone located in the center of the chest, which connects to the ribcage and protects the heart and lungs.

Rib

A long, curved bone surrounding the chest cavity that protects the heart and lungs and serves as attachment for chest muscles.

Vertebra

One of the individual bones that form the vertebral column in vertebrates, providing structural support and protecting the spinal cord.