A Specific Tax Will Be Imposed on a Good

question 29

Multiple Choice

A specific tax will be imposed on a good. The supply and demand curves for the good are shown in the diagram below. Given this information, the burden of the tax:

• A) is shared about evenly between consumers and producers.
• B) falls mostly on consumers.
• C) falls mostly on producers.
• D) cannot be determined without more information on the price elasticities of supply and demand.

---

Definitions:

Determinism

The philosophical idea that all events, including moral choices, are completely determined by previously existing causes.

Human Actions

Behaviors or activities initiated by humans, often considered within the context of morality, intentionality, and free will.

Jean-Paul Sartre

A 20th-century French existentialist philosopher, playwright, novelist, and political activist, known for his explorations of freedom, consciousness, and existence.

Kant

Immanuel Kant, an 18th-century German philosopher known for his work in epistemology, ethics, and metaphysics.