​Suppose That a $4 Per Unit Tax Is Imposed on the Sellers

question 294

Multiple Choice

​Suppose that a $4 per unit tax is imposed on the sellers of DVDs. The effect of the tax will be to

• A)​shift the supply curve up by exactly $4 and the price paid by buyers will remain unchanged.
• B)​shift the supply curve up by exactly $4 and the price paid by buyers will rise by less than $4.
• C)​shift the supply curve up by exactly $4 and the price received by sellers will rise by exactly $4.
• D)​shift the demand curve down by exactly $4 and the price paid by buyers will fall by exactly $4.

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