The Burden of a Tax on a Good Is Said

question 215

Multiple Choice

The burden of a tax on a good is said to fall completely on the consumers if the:

• A)price paid by consumers for the good declines by the amount of the tax.
• B)price paid by consumers for the good increases by the amount of the tax.
• C)price paid by consumers does not change.
• D)wages received by workers who produce the good increase by the amount of the tax.