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[vohkinne]

Draw a perfectly inelastic demand curve and a regular positively sloped supply curve such that the market equilibrium price is $5 and market equilibrium quantity sold in this market is 30 units.

Now impose a sales tax of $1 (per unit) on the sellers in this market and show the effect in your diagram.

a) what is the price exchanged between consumers and producers
b) what is the effective price that consumers pay now (after any tax payments they may have to make)?
c) what is the effective price that producers receive (after any tax payments they may have to make)?
d)who bears the burden of the tax? -->Consmers

The demand curve is vertical and I have a positively sloped supply curve. Is there a shift in the demand curve to the right 1 unit? and I need guidance with some of the questions too. Thank you.