Figure 6-28 -Refer to Figure 6-28.Suppose a Tax of $4 Per Unit

question 130

Multiple Choice

Figure 6-28
-Refer to Figure 6-28.Suppose a tax of $4 per unit is imposed on this market.Which of the following is correct?

• A)Buyers and sellers will share the burden of the tax equally.
• B)Buyers will bear more of the burden of the tax than sellers.
• C)Sellers will bear more of the burden of the tax than buyers.
• D)Any of the above is possible in this market.

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