Multiple Choice

-The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from S₀ to S₁. The tax incidence is
A) split equally between consumers and producers, each paying $1 per bucket.
B) split equally between consumers and producers, each paying $2 per bucket.
C) such that consumers pay $2 per bucket and producers pay $1 per bucket.
D) such that consumers pay $1 per bucket and producers pay $2 per bucket.
E) such that producers pay all of the tax.
Correct Answer:
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