Consider the market for heart transplants. The demand for a heart transplant is perfectly inelastic and the supply curve is upward- sloping. If a $1,000 tax per transplant is imposed on buyers (the recipients) , how will the tax be divided between the buyer and seller?
A) The tax will be evenly divided between the sellers and buyers.
B) The sellers will pay the entire tax.
C) The buyers will pay the entire tax.
D) More information is needed to determine how the tax will be split.
Correct Answer:
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Q123: A subsidy is a
A) tax imposed by
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A) always results in a
