If consumers pay 100 percent of a commodity tax, what could one conclude?
A) Suppliers have more effective lobbying in Washington than consumers.
B) The commodity in question has a perfectly elastic supply curve.
C) The commodity in question has a perfectly elastic demand curve.
D) Neither side has a perfectly elastic curve but the supply side is more elastic than the demand side.
Correct Answer:
Verified
Q38: Suppose there is a tax of $50
Q39: If buyers are required to pay a
Q40: Use the following to answer questions:
Figure: Demand
Q41: Figure: Commodity Tax with Elastic Demand
Q42: Use the following to answer questions:
Figure: Tax
Q44: Suppose that there is a tax of
Q45: In the market for Good X-a necessity
Q46: Whether a buyer or a seller pays
Q47: Which of the following statements is TRUE?
I.
Q48: The government can choose between taxing buyers
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