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-The Above Figure Shows the Market for Gourmet Ice Cream

Question 33

Multiple Choice

  -The above figure shows the market for gourmet ice cream.In effort to reduce obesity,government places a $2 tax per gallon on suppliers in this market,shifting the supply curve from S? to S?.The tax incidence is A)  split equally between consumers and producers, each paying $1 per gallon. B)  split equally between consumers and producers, each paying $2 per gallon. C)  such that consumers pay $2 per gallon and producers pay $1 per gallon. D)  such that consumers pay $1 per gallon and producers pay $2 per gallon. E)  such that producers pay all of the tax.
-The above figure shows the market for gourmet ice cream.In effort to reduce obesity,government places a $2 tax per gallon on suppliers in this market,shifting the supply curve from S? to S?.The tax incidence is


A) split equally between consumers and producers, each paying $1 per gallon.
B) split equally between consumers and producers, each paying $2 per gallon.
C) such that consumers pay $2 per gallon and producers pay $1 per gallon.
D) such that consumers pay $1 per gallon and producers pay $2 per gallon.
E) such that producers pay all of the tax.

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