The supply of sand is perfectly inelastic and the demand curve for sand is downward sloping. Hence, if a tax on sand is imposed,

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Quizplus · Accepted Answer

Since the supply of sand is perfectly inelastic, the quantity supplied will not change in response to the tax. As a result, the entire burden of the tax will be borne by the buyers in the form of a higher price. Therefore, sand sellers will not bear any of the burden of the tax and sand buyers will bear the entire burden.

The Supply of Sand Is Perfectly Inelastic and the Demand