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Managerial Economics · End Term · 31 Aug 2025 · May 2025 term · Set QIA1

Question 37: Suppose the supply curve for pencils is vertical and gov…

Question 37

+1 markOne correct option

Suppose the supply curve for pencils is vertical and government imposes a tax in this market.

  1. A

    Deadweight loss of tax in this market will be finite

  2. B

    Suppliers are paying full amount of tax

  3. C

    Both Deadweight loss of tax in this market will be finite & Suppliers are paying full amount of tax

  4. D

    None of these

Show answer

Correct answer

  • B

    Suppliers are paying full amount of tax

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Question 37 of 37 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 31 Aug 2025, in the May 2025 term (IIT M IMPROVEMENT FN EXAM QIA1 31 Aug 2025). It carries 1 mark.

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