In the Graph,S₀ = Supply Curve for Bourbon (Seller's Supply)D

question 149

Multiple Choice

In the graph,S₀ = supply curve for bourbon (seller's supply) D = demand curve for bourbonSₜ = supply for bourbon plus excise tax on bourbon (effective supply as seen by buyers) tax = an excise tax on bourbon (of $20 per case) The excise tax on bourbon as described in the diagram is ultimately paid

• A)by buyers only.
• B)by sellers only.
• C)40 percent by buyers and 60 percent by sellers.
• D)60 percent by buyers and 40 percent by sellers.

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