Figure 6-29 Suppose the Government Imposes a $2 on This Market

question 41

Multiple Choice

Figure 6-29
Suppose the government imposes a $2 on this market.
-Refer to Figure 6-29.Suppose D1 represents the demand curve for gasoline in both the short run and long run,S1 represents the supply curve for gasoline in the short run,and S2 represents the supply curve for gasoline in the long run.After the imposition of the $2,

• A)buyers bear a higher burden of the tax in the short run than in the long run.
• B)sellers bear a higher burden of the tax in the short run than in the long run.
• C)buyers and sellers bear an equal burden of the tax in both the short run and long run.
• D)buyers and sellers bear an equal burden of the tax in the short run,but buyers bear a higher burden of the tax in the long run.

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Definitions:

Frequency Polygon

A graphical representation of the distribution of a dataset that shows how often each value occurs, connecting the middle of each interval.

Histogram

A graphical representation of the distribution of numerical data, often displaying the frequency of data points within specified intervals.

Ordinal Level

A measurement scale that organizes data into categories that are ranked or ordered based on some criteria.

Class Interval

The range of values within which data points are grouped together in the creation of a frequency distribution.