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Refer to the Graph

Question 290

Multiple Choice

Refer to the graph. Assume the market for this product started out at the intersection of D ₂ and S ₁. Then supply shifted from S ₁ to S ₂ due to an excise tax imposed on the product. If demand subsequently shifts from D ₂ to D ₁, then which of the following will decrease? A) the tax per unit of the product B) the tax revenue C) the deadweight loss due to the tax D) the portion of the tax per unit that is shouldered by the buyers Refer to the graph. Assume the market for this product started out at the intersection of D ₂ and S ₁. Then supply shifted from S ₁ to S ₂ due to an excise tax imposed on the product. If demand subsequently shifts from D ₂ to D ₁, then which of the following will decrease?


A) the tax per unit of the product
B) the tax revenue
C) the deadweight loss due to the tax
D) the portion of the tax per unit that is shouldered by the buyers

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