Use the Figure Below to Answer the Following Question(s)

question 218

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-8
-Refer to Figure 4-8. The supply curve S₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S₁ to S₂. Which of the following states the actual burden of the tax?

• A) $10 for buyers and $30 for sellers
• B) $30 for buyers and $10 for sellers
• C) The entire $40 falls on sellers.
• D) The entire $40 falls on buyers.

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Definitions:

Corporate Sector

The part of the economy composed of both private and publicly traded companies.

Public Good

A product or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Chief Executive

The highest-ranking official in a governmental body or organization, often the president in a presidential system of government, responsible for implementing laws and overseeing the executive branch.