If a $5,000 Tax Is Placed Legally (Statutorily) on the Sellers

question 278

Multiple Choice

If a $5,000 tax is placed legally (statutorily) on the sellers of new automobiles and as a result the price of automobiles to consumers rises by $4,000, then the actual burden of the tax

• A) falls completely on automobile buyers.
• B) falls completely on automobile sellers.
• C) is $4,000 on automobile buyers and $1,000 on sellers.
• D) is $1,000 on automobile buyers and $4,000 on sellers.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation means that the values tend to be close to the mean, while a high standard deviation means they are spread out over a wider range.

Normal Model

Also known as the normal distribution, a bell-shaped curve that represents the distribution of many types of data where most values cluster around a mean value.

85th Percentile

A value below which 85% of the data points in a dataset fall, used in statistical analysis to understand distribution.

Snowfall

The amount of snow that falls in a specific area within a specific time period, usually measured in inches or centimeters.