Figure 6-19 -Refer to Figure 6-19.Suppose a Tax of $2 Per Unit

question 9

Multiple Choice

Figure 6-19
-Refer to Figure 6-19.Suppose a tax of $2 per unit is imposed on this market.Which of the following is correct?

• A)One-fourth of the burden of the tax will fall on buyers,and three-fourths of the burden of the tax will fall on sellers.
• B)One-third of the burden of the tax will fall on buyers,and two-thirds of the burden of the tax will fall on sellers.
• C)One-half of the burden of the tax will fall on buyers,and one-half of the burden of the tax will fall on sellers.
• D)Two-thirds of the burden of the tax will fall on buyers,and one-third of the burden of the tax will fall on sellers.

---

Definitions:

Anterior Pituitary

A gland located at the base of the brain that produces hormones regulating critical bodily functions, including growth and reproductive activities.

Adrenal Medullary Hormones

Hormones produced by the adrenal gland's medulla, such as adrenaline and noradrenaline, that are involved in stress responses.

Stress

The body’s method of reacting to a condition such as a threat, challenge or physical and psychological barrier, stimulating a fight or flight response.

Blood Glucose

The concentration of glucose present in the blood, important for energy supply and metabolic regulation.