Assume a Unit Tax of $4 Is Placed on Suppliers

question 18

Multiple Choice

Assume a unit tax of $4 is placed on suppliers.They are able to pass along some of the tax to suppliers as evidenced by prices rising from $5 per unit to $7 per unit.Output declines from 10 units to 8 units.What is the ratio of the demander's share of the tax burden to the suppliers?

• A)2.5
• B)2.0
• C)1.5
• D)1.0

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Definitions:

Conflict

A situation where individuals, groups, or nations experience a clash due to differing needs, interests, or views, leading to tensions or disputes.

Ecological Theory

A framework that explores the interrelation between individuals and their environments, emphasizing the complex systems through which these interactions are mediated and impact development.

Established Group

A group that has settled into a recognizable structure or role within a society or organization, often with a clear identity and longevity.

Invading Group

A population that enters a territory or community with the intention of taking control, often causing conflict or disruption.