Asked by
Isaac Dunlap
on Oct 12, 2024Verified
The seller will bear the entire burden of a tax in all of the following except
A) when the demand is perfectly elastic.
B) when the supply is perfectly inelastic.
C) when the supply curve is a vertical line.
D) when the demand curve is a vertical line.
Burden of a Tax
The economic impact of a tax on the welfare of buyers and sellers, which can affect market behavior and economic efficiency.
Perfectly Elastic
A situation in economics where the quantity demanded or supplied changes by an infinite amount in response to any change in price.
Perfectly Inelastic
A market scenario where a change in price does not affect the quantity demanded or supplied, often represented with a vertical demand or supply curve.
- Explain the impact of taxation on market results, focusing on the distribution of tax burdens and the revenue generated for the government.
Verified Answer
JM
Learning Objectives
- Explain the impact of taxation on market results, focusing on the distribution of tax burdens and the revenue generated for the government.