If the demand curve for a product is vertical, then
A. consumers will refuse to bear any share of tax burden.
B. producers will bear the larger share of the tax burden.
C. consumers will bear the entire tax burden.
D. producers and consumers will equally share the tax burden.
Answer: C
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A study discussed in the Making the Connection feature in the text found that there is ________ that some consumers are not well aware of prices, even for goods they buy regularly
A) substantial evidence B) no evidence C) little evidence D) no reason to believe
When talking about demand, price elasticity refers to the
a. price flexibility in response to demand changes. b. adaptability of suppliers to price changes. c. responsiveness of buyers to price changes. d. ability to stretch one’s budget by making wise choices.
Why is the demand for foreign currencies known as a derived demand?
If an increase in the price of good A does not change its quantity demanded, then the price elasticity of demand for good A is said to be: a. perfectly elastic
b. perfectly inelastic. c. elastic. d. inelastic.