Use the Following to Answer Questions

question 200

Multiple Choice

Use the following to answer questions :
Figure: The Gasoline Market
-(Figure: The Gasoline Market) Use Figure: The Gasoline Market.The pre-tax equilibrium price is $3,and the equilibrium quantity before tax is 20 000 litres.An excise tax has been levied on each litre of gasoline supplied by producers.Based on the graph,the incidence of the tax on suppliers is:

• A) $1.50.
• B) $1.
• C) $0.75.
• D) $15 000.

---

Definitions:

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of that company.

Book Building

A process by which an underwriter attempts to determine the price at which an initial public offering will be offered.

Investor Demand

The interest and willingness of investors to purchase securities, significantly influencing market prices and interest rates.

Residual Claim

The right to claim assets only after all other liabilities and claims have been settled, typically relevant to equity holders.