Figure 6-16 -Refer to Figure 6-16.Suppose a Tax of $5 Per Unit

question 251

Multiple Choice

Figure 6-16

-Refer to Figure 6-16.Suppose a tax of $5 per unit is imposed on this market.Which of the following is correct?

• A) Buyers and sellers will share the burden of the tax equally.
• B) Buyers will bear more of the burden of the tax than sellers will.
• C) Sellers will bear more of the burden of the tax than buyers will.
• D) Any of the above is possible.