The demand curve for pizza in Foodieland is vertical. If a tax is imposed on each pizza bought, ________
A) the burden of the tax will fall entirely on the buyers
B) the burden of the tax will fall entirely on the sellers
C) the tax incidence on the sellers will be higher than that on the buyers
D) the deadweight loss due to taxation will be large
A
You might also like to view...
Since the late 1980s:
A. the Soviet socialist economic and political structure has fallen apart. B. the Soviet socialist economic and political structure has spread to other nations. C. the Soviet Union installed Soviet-dominated governments in a number of Eastern European countries. D. socialism has gained popularity among the governments of Eastern Europe.
In long-run competitive equilibrium it is possible for firm owners to
A. earn both rent and economic profit. B. earn rent but not economic profit. C. earn both economic profit and rent. D. both b and c E. both a and c