Figure 8-7 the Vertical Distance Between Points a and B Represents a Represents

question 92

Multiple Choice

Figure 8-7
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-7.Which of the following statements summarizes the incidence of the tax?

• A)For each unit of the good that is sold,buyers bear one-half of the tax burden,and sellers bear one-half of the tax burden.
• B)For each unit of the good that is sold,buyers bear one-third of the tax burden,and sellers bear two-thirds of the tax burden.
• C)For each unit of the good that is sold,buyers bear one-fourth of the tax burden,and sellers bear three-fourths of the tax burden.
• D)For each unit of the good that is sold,buyers bear three-fourths of the tax burden,and sellers bear one-fourth of the tax burden.

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