Suppose That There Is a Tax of $5 Per Unit

question 166

Multiple Choice

Suppose that there is a tax of $5 per unit, and the demand curve is more elastic than the supply curve. Which of the following statements could be TRUE?

• A) Buyers pay $3 of the tax.
• B) Buyers pay $1 of the tax.
• C) Sellers pay $1 of the tax.
• D) Sellers pay all of the tax.

---

Definitions:

Typed Signature

A digital or electronic representation of a person's handwritten signature.

Zip Codes

A system of postal codes used by the United States Postal Service to ensure mail is delivered to the correct geographic region efficiently.

Sender's Name

The name of the individual or entity sending a letter, package, or email, typically indicated at the beginning or end of the message.

Closing

The finalization or completion of a transaction, agreement, or period of time.