Figure 4-22 -Refer to Figure 4-22.Suppose the Same S and D Curves

question 64

Multiple Choice

Figure 4-22

-Refer to Figure 4-22.Suppose the same S and D curves apply,and a tax of the same amount per unit as shown here is imposed.Now,however,the buyers of the good,rather than the sellers,are required to pay the tax to the government.Now,

• A)the burden on buyers will be larger than in the case illustrated in Figure 4-22.
• B)the burden on sellers will be smaller than in the case illustrated in Figure 4-22.
• C)a downward shift of the demand curve replaces the upward shift of the supply curve.
• D)All of the above are correct.

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