Refer to the Graph

question 175

Multiple Choice

Refer to the graph. Assume the market for this product is in equilibrium at the intersection of D ₂ and S ₁. The shift in supply from S ₁ to S ₂ is due to an excise tax imposed on the product. The incidence of the tax is

• A)$1 from the buyers and $3 from the sellers.
• B)$3 from the buyers and $3 from the sellers.
• C)$1 from the buyers and $1 from the sellers.
• D)$4 from the buyers and $0 from the sellers.

---

Definitions:

Prosocial Behaviour

Actions intended to benefit others, characterized by altruism, cooperation, and other positive social acts.

Positively Valued

Regarded with high esteem or importance, often due to perceived benefits, moral significance, or emotional attachment.

Benefit Someone

To provide advantage or positive outcomes to an individual or group, improving their condition or situation.

Prosocial Behaviour

Voluntary actions that are intended to help or benefit another individual or group of individuals.