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wrote...
Posts: 202
6 months ago

Question 1.

The government proposes a tax on imported champagne. Buyers will bear the entire burden of the tax if the

• supply curve for imported champagne is vertical.

• demand curve for imported champagne is vertical.

• demand curve for imported champagne is horizontal.

• demand curve is downward sloping and the supply curve is upward sloping.

Question 2.

Suppose the demand curve for a product is vertical and the supply curve is upward sloping. If a per-unit tax is imposed in the market for this product,

• sellers bear the entire burden of the tax.

• buyers bear the entire burden of the tax.

• the tax burden will be shared equally between buyers and sellers.

• buyers share the burden of the tax with government.
Textbook 

Microeconomics


Edition: 7th
Authors:
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Answer verified by a subject expert
wrote...
Posts: 220
Rep: 6 0
6 months ago
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Answer 1

demand curve for imported champagne is vertical.

Answer 2

buyers bear the entire burden of the tax.
1

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wrote...
6 months ago
Exactly what I needed for my project, TYSM
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