Figure 6-21 -Refer to Figure 6-22.Suppose the Same Supply and Demand Curves

question 96

Multiple Choice

Figure 6-21

-Refer to Figure 6-22.Suppose the same supply and demand 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.After the sellers are required to pay the tax,relative to the case depicted in the graph,the burden on buyers will be

• A) larger, and the burden on sellers will be smaller.
• B) smaller, and the burden on sellers will be larger.
• C) 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:

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Hybrid Social Venture

An enterprise that combines aspects of non-profit and for-profit models aiming to address social issues while generating revenue.

Buy One Give One

A business model where a company donates a product for each product purchased by a consumer.

Venture Philanthropy

A type of social impact investment that combines financial investments with philanthropic goals, often providing expertise and networks in addition to capital.