If a $500 Tax Is Placed Legally (Statutorily) on the Sellers

question 105

Multiple Choice

If a $500 tax is placed legally (statutorily) on the sellers of new violins and as a result the price of violins to consumers rises by $400, then the actual burden of the tax

• A) falls completely on violin buyers.
• B) falls completely on violin sellers.
• C) is $400 on violin buyers and $100 on sellers.
• D) is $100 on violin buyers and $400 on sellers.

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