Use the figure below to answer the following question(s).
Figure 4-9

Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax?
A) $.20 for buyers and $.20 for sellers
B) $.30 for buyers and $.10 for sellers
C) The entire $.40 falls on sellers.
D) The entire $.40 falls on buyers.

Question

Use the figure below to answer the following question(s).
Figure 4-9

Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax?
A) $.20 for buyers and $.20 for sellers 
B) $.30 for buyers and $.10 for sellers 
C) The entire $.40 falls on sellers. 
D) The entire $.40 falls on buyers.

Quizplus · Accepted Answer

The Answer of Use the figure below to answer the following question(s).
Figure 4-9

Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax?
A) $.20 for buyers and $.20 for sellers 
B) $.30 for buyers and $.10 for sellers 
C) The entire $.40 falls on sellers. 
D) The entire $.40 falls on buyers.

Use the Figure Below to Answer the Following Question(s)