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The Supply of Sand Is Perfectly Inelastic and the Demand

Question 98

Multiple Choice

The supply of sand is perfectly inelastic and the demand curve for sand is downward sloping.Hence,if a tax on sand is imposed,


A) sand buyers pay the entire tax.
B) sand sellers pay the entire tax.
C) the tax is split evenly between the buyers and sellers.
D) the government pays the entire tax.
E) the government collects no tax revenue because the supply is perfectly inelastic.

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