Figure 4-20 -Refer to Figure 4-20. Suppose the Same S and D

question 64

Multiple Choice

Figure 4-20
-Refer to Figure 4-20. Suppose the same S and D curves apply, and a tax of the same amount per unit as shown here is imposed. Now, however, the sellers of the good, rather than the buyers, are required to pay the tax to the government. Now, relative to the case depicted in the figure,

• A) the burden on buyers will be larger and the burden on sellers will be smaller.
• B) the burden on buyers will be smaller and the burden on sellers will be larger.
• C) the burden on buyers will be the same and the burden on sellers will be the same.
• D) The relative burdens in the two cases cannot be determined without further information.

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Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a set of rules governing the buying and selling of goods across international borders.

Irrevocable

Not able to be changed, reversed, or recovered; final and unalterable.

Revocation

The act of cancelling or withdrawing something, such as an offer, license, or privilege.

Indefinite Offer

An offer in a contract that lacks specific, essential details, making it unclear or not concluded.