The supply curve of sand is horizontal so the supply of sand is perfectly ________.A tax of 1 cent a pound increases the price by 1 cent a pound and the buyer pays ________ the tax.The tax is therefore ________.

Question

Quizplus · Accepted Answer

The supply curve of sand is horizontal, which means that the supply of sand is perfectly elastic. A tax of 1 cent a pound increases the price by 1 cent a pound, which means that the buyer pays all of the tax. The tax is therefore inefficient.

The Supply Curve of Sand Is Horizontal So the Supply