The government proposes a tax on imported champagne. Buyers will ...

[lak]

The government proposes a tax on imported champagne. Buyers will bear the entire burden of the tax if the
 
  A) demand curve for imported champagne is horizontal.
  B) demand curve is downward sloping and the supply curve is upward sloping.
  C) demand curve for imported champagne is vertical.
  D) supply curve for imported champagne is vertical.

Question 2

Supply is elastic whenever the value of the elasticity of supply is positive and greater than 1.
 
  Indicate whether the statement is true or false

[nathang24]

Answer to Question 1

C

Answer to Question 2

TRUE

[lak]

Correct answers!

[nathang24]

Great! Please up vote