The Graph Shows the Supply Curve for a Product Before

question 56

Multiple Choice

The graph shows the supply curve for a product before tax ( S ₀ ) and after an excise tax is imposed ( S ₁) . The excise tax on the product is ultimately paid

• A)by buyers only.
• B)by sellers only.
• C)75 percent by buyers and 25 percent by sellers.
• D)25 percent by buyers and 75 percent by sellers.

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Definitions:

Tax Deductible

Expenses that can be subtracted from gross income, lowering the taxable income and thus the amount of tax owed.

Investor's Perspective

The viewpoint or considerations of an individual or entity actively investing or planning to invest in markets, focusing on potential risks and returns.

Unusually Risky

Describes investments or actions that carry a higher than normal level of risk, often due to uncertain outcomes or volatile conditions.

IRRs

The Internal Rate of Return is a measurement used in the process of capital budgeting to assess the potential profitability of investments.