Suppose Buyers of Fountain Drinks Are Required to Send $0

question 3

Multiple Choice

Suppose buyers of fountain drinks are required to send $0.50 to the government for every fountain drink they buy.Further,suppose this tax causes the effective price received by sellers of fountain drinks to fall by $0.20 per drink.Which of the following statements is correct?

• A)This tax causes the demand curve for fountain drinks to shift downward by $0.50 at each quantity.
• B)The price paid by buyers is $0.30 per drink more than it was before the tax.
• C)Forty percent of the burden of the tax falls on sellers.
• D)All of the above are correct.

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Definitions:

Possible Selves

The various components of the self-concept that represent what individuals could become, what they would like to become, and what they are afraid of becoming.

Current Selves

An individual's present sense of identity, incorporating how they see themselves in the moment and their ongoing life narrative.

Self-Serving Bias

A cognitive bias that involves people attributing their successes to internal factors while blaming failures on external factors.

High Self-Esteem

A positive evaluation of oneself and feeling confident in one's own abilities or worth.