If the supply curve is perfectly inelastic, the burden of a tax on suppliers is borne:
A) entirely by the suppliers.
B) entirely by the consumers.
C) mostly by the suppliers and partly by the consumers if the demand curve is inelastic.
D) partly by the suppliers and mostly by the consumers if the demand curve is elastic.

Question

Quizplus · Accepted Answer

The Answer of If the supply curve is perfectly inelastic, the burden of a tax on suppliers is borne:
A) entirely by the suppliers.
B) entirely by the consumers.
C) mostly by the suppliers and partly by the consumers if the demand curve is inelastic.
D) partly by the suppliers and mostly by the consumers if the demand curve is elastic.

If the Supply Curve Is Perfectly Inelastic, the Burden of a Tax