Exhibit 19-2 ​

question 144

Multiple Choice

Exhibit 19-2
​

-Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X, as shown by the shift of S₁ to S₂. Approximately what percentage of the tax do producers end up paying?

• A)55 percent
• B)45 percent
• C)70 percent
• D)63 percent
• E)25 percent

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Definitions:

Direct Shipping Network

A direct shipping network is a distribution model that ships products directly from suppliers to consumers, eliminating intermediaries.

Intermediate Warehouses

Facilities used to store goods temporarily during the middle stages of the supply chain, typically between the manufacturer and the final distribution centers.

Simplicity

Simplicity in a business or design context refers to minimizing complexity to focus on essential features, often leading to increased efficiency and ease of use.

Publicly Owned

Refers to assets owned by the government or the public sector, intended for the benefit of the general public.