Question

Suppose that in a particular market, the supply curve is

Q: Answer-Suppose that in a particular market, the supply curve is highly elastic and the demand curve is high...

There is direct relationship between elasticity of supply and burden bear by buyer. Also, there is direct relationship between elasticity of demand and burden bear by seller. If supply is highly elastic, then buyer will bear the greater burden than sellers.

highly elastic and the demand curve is highly inelastic. If a tax is imposed in this market, then

A the buyers will bear a greater burden of the tax than the sellers

B the sellers will bear a greater burden of the tax than the buyers.

C the buyers and sellers are likely to share the burden of the tax equality

D the buyers and sellers will not share the burden equally, but it is impossible to determine who will bear the greater burden of the tax without more information

Practice Next

More Research Questions

What will come in place of (?), in the given number series.

1, 4, 9, 16, ?, 36
{(12√5 + 6√5 )} ×{(10√5 - 5√5 )} - 8² + 6² = ?
11 20 ? 64 112 192
...
350 435 367 ? 384 401
...
0, 6, 24, ?, 120, 210
21, 37, 73, 137, ?, 381
What will come in place of the question mark (?) in the following series?

4, 11, 32, 95, 284, 851, ?
18, 34, 70, 134, ?, 378
120, 136, 111, 147, ?, 162
What will come in place of the question mark (?) in the following number series?

124, 131, 117, ?, 110, 145

Suppose that in a particular market, the supply curve is

Solution