Figure 6-17 -Refer to Figure 6-17.How Is the Burden of the Tax

question 496

Multiple Choice

Figure 6-17

-Refer to Figure 6-17.How is the burden of the tax shared between buyers and sellers? Buyers bear

• A) three-fourths of the burden, and sellers bear one-fourth of the burden.
• B) two-thirds of the burden, and sellers bear one-third of the burden.
• C) one-half of the burden, and sellers bear one-half of the burden.
• D) one-fourth of the burden, and sellers bear three-fourths of the burden.

---

Definitions:

Marginal Benefit

The incremental utility or satisfaction derived from the consumption or production of an additional good or service unit.

Marginal Cost

The increment in comprehensive expenses related to the generation of an extra unit of a good or service.

Total Benefit

The entire satisfaction or value derived from consuming a good or service.

Optimal Quantity

The quantity of production that maximizes a firm's profit or minimizes its costs under certain conditions.