The supply of sand is perfectly inelastic and the demand curve for sand is downward sloping.Hence,if a tax on sand is imposed,

Question

Quizplus · Accepted Answer

Since the supply of sand is perfectly inelastic, the quantity of sand supplied does not change in response to changes in the price. Therefore, the entire burden of the tax will fall on the buyers as they will have to pay a higher price to buy the same amount of sand. The sellers will not be affected by the tax as they will continue to sell the same amount of sand at the same price, and hence will not bear any burden of the tax.

The Supply of Sand Is Perfectly Inelastic and the Demand