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

question 123

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-8

-Refer to Figure 4-8.The supply curve S₁ and the demand curve D indicate initial conditions in the market for soft coal.A $40-per-ton tax on soft coal is levied,shifting the supply curve from S₁ to S₂.Which of the following states the actual burden of the tax?

• A)$10 for buyers and $30 for sellers
• B)$30 for buyers and $10 for sellers
• C)The entire $40 falls on sellers.
• D)The entire $40 falls on buyers.

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