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

question 269

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-9
-Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax?

• A) $.20 for buyers and $.20 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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