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Suppose the Demand Curve for a Good Is Very Flat

Question 209

Multiple Choice

Suppose the demand curve for a good is very flat and the supply curve for the good is very steep.If the government taxes this good,


A) buyers and sellers will each share 50 percent of the burden, regardless of the slopes of the demand and supply curves.
B) sellers will bear a larger share of the tax burden and buyers will bear a smaller share of the burden.
C) the distribution of the burden will depend upon whether the buyers or the sellers are required to send the tax to the government.
D) the amount of tax revenue collected by the government will depend upon whether the buyers or the sellers are required to send the tax to the government.

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