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The Figure Below Shows the Demand and the Supply in a Market

Question 113

Multiple Choice

The figure below shows the demand and the supply in a market before and after a tax is imposed. The demand and the supply curves are straight lines.
The figure below shows the demand and the supply in a market before and after a tax is imposed. The demand and the supply curves are straight lines.    -Refer to the figure above.Who is legally responsible to pay the tax? How much is the tax? A)  Buyers are required to pay the tax of $0.75 per unit bought to the government. B)  Buyers are required to pay the tax of $1.00 per unit bought to the government. C)  Sellers are required to pay the tax of $0.75 per unit sold to the government. D)  Sellers are required to pay the tax of $1.00 per unit sold to the government.
-Refer to the figure above.Who is legally responsible to pay the tax? How much is the tax?


A) Buyers are required to pay the tax of $0.75 per unit bought to the government.
B) Buyers are required to pay the tax of $1.00 per unit bought to the government.
C) Sellers are required to pay the tax of $0.75 per unit sold to the government.
D) Sellers are required to pay the tax of $1.00 per unit sold to the government.

Correct Answer:

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