Use the Figure Below to Answer the Following Question(s)

question 184

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-7

-Refer to Figure 4-7.The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline.A $.60-per-gallon excise tax on gasoline is levied,which shifts the supply curve from S₁ to S₂.Which of the following states the actual burden of the tax?

• A)$.50 for buyers and $.10 for sellers
• B)$.50 for sellers and $.10 for buyers
• C)The entire $.60 falls on sellers.
• D)The entire $.60 falls on buyers.

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Definitions:

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a designated person.

Ammeter

An instrument used to measure the current in a circuit, expressed in amperes.

Current Flow

The movement of electric charge carriers, such as electrons, through a conductor or space.

Load

An electrical component or portion of a circuit that consumes electric power.