If the demand curve is vertical and the supply curve slopes upward,the imposition of a sales tax will

Question

Quizplus · Accepted Answer

When the demand curve is vertical, the quantity demanded does not change regardless of changes in price. Therefore, the entire burden of the sales tax will fall on the buyer. The supply curve slopes upward, meaning that as the price increases, the quantity supplied also increases. The imposition of the sales tax will not affect the quantity supplied, so the seller will not bear any of the burden of the tax.

If the Demand Curve Is Vertical and the Supply Curve