Figure 6-23 -Refer to Figure 6-23.Which of the Following Is Correct

question 61

Multiple Choice

Figure 6-23
-Refer to Figure 6-23.Which of the following is correct?

• A)The entire burden of the tax falls on sellers,and none of the burden of the tax falls on buyers.
• B)One-third of the burden of the tax falls on buyers,and two-thirds of the burden of the tax falls on sellers.
• C)One-half of the burden of the tax falls on buyers,and one-half of the burden of the tax falls on sellers.
• D)Two-thirds of the burden of the tax falls on buyers,and one-third of the burden of the tax falls on sellers.

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Definitions:

Third Parties

Individuals or entities who are not directly involved in a legal contract or agreement but may be affected by its outcomes.

Ernst & Ernst v. Hochfelder

A 1976 Supreme Court case establishing that plaintiffs in securities fraud cases must prove that the defendant acted with scienter, or intent to deceive, manipulate, or defraud.

Supreme Court

The highest judicial court in a country or state, which has the ultimate authority over all judicial matters within its jurisdiction.

SEC Rule 10b-5

A regulation enacted by the U.S. Securities and Exchange Commission that prohibits fraud in the sale of securities.