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Good a Has a Perfectly Inelastic Demand and an Upward-Sloping

Question 119

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Good A has a perfectly inelastic demand and an upward-sloping supply curve.Good B has a perfectly inelastic supply and a downward-sloping demand curve.If the same sales tax is imposed on the sellers of both good A and good B,the


A) price paid by buyers of good B rises by more than the price paid by buyers of good A.
B) price paid by buyers of good A rises by more than the price paid by buyers of good B.
C) price paid by buyers of good A rises by the same amount as the price paid by buyers of good B.
D) quantity bought by buyers of good B decreases by more than the quantity bought by buyers of good A.
E) quantity bought by buyers of good A decreases by more than the quantity bought by buyers of good A.

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