Figure 6-11 -Refer to Figure 6-11.Suppose the Same Supply and Demand Curves

question 82

Multiple Choice

Figure 6-11
-Refer to Figure 6-11.Suppose the same supply and demand 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,relative to the case depicted in the figure,

• A) the burden on buyers will be larger and the burden on sellers will be smaller.
• B) the burden on buyers will be smaller and the burden on sellers will be larger.
• C) the burden on buyers will be the same and the burden on sellers will be the same.
• D) The relative burdens in the two cases cannot be determined without further information.

---

Definitions:

Competitive Advantage

The attributes that allow an organization to outperform its competitors.

Customer Services

Activities and support provided by a business to its customers before, during, and after a purchase to enhance satisfaction.

Lower Costs

The reduction of expenses associated with producing or offering goods and services, aiming to improve efficiency and profitability.

Image Building

The strategic process of creating, improving, or maintaining a positive public perception of a company, brand, or individual.