1 Under the health care law, you must have qualifying health coverage or pay a fee on your next federal tax return.  The penalty in 2016 is 2.5% of household income or $695 per adult (half of that per child), whichever is higher. Learn more about the fee for not being covered.
The law of supply is a fundamental principle of economic theory which states that, all else equal, an increase in price results in an increase in quantity supplied. In other words, there is a direct relationship between price and quantity: quantities respond in the same direction as price changes.
However, if the consumers will not bear... Perfectly inelastic supply means that suppliers will provide the same amount of product regardless of the price. In this case, if a new sales tax is imposed on the product, the seller will be willing to take the whole burden of the tax.