Figure 6-18 -Refer to Figure 6-18.Suppose the Same Supply and Demand Curves

question 494

Multiple Choice

Figure 6-18

-Refer to Figure 6-18.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.After the buyers pay the tax,relative to the case depicted in the figure,the burden on buyers will be

• A) larger, and the burden on sellers will be smaller.
• B) smaller, and the burden on sellers will be larger.
• C) 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.

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