When a Tax Is Placed on the Sellers of Lemonade

question 158

Multiple Choice

When a tax is placed on the sellers of lemonade,

• A) the sellers bear the entire burden of the tax.
• B) the buyers bear the entire burden of the tax.
• C) the burden of the tax will be always be equally divided between the buyers and the sellers.
• D) the burden of the tax will be shared by the buyers and the sellers,but the division of the burden is not always equal.

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