Exhibit 19-6 ​

question 65

Multiple Choice

Exhibit 19-6
​

-Refer to Exhibit 19-6. Let S₁ be the supply curve of a producer. If S₂ is the supply curve of the same producer after the government imposes a per-unit tax, the share of the tax paid by the producer as compared to the share of the tax paid by consumers will be

• A)greater if D₁ is the demand curve facing the producer.
• B)greater if D₂ is the demand curve facing the producer.
• C)the same regardless of which demand curve the firm faces.
• D)Any of the above, depending on the type of good the tax is imposed on.

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