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Refer to the Above Figure in Which S Is the Before-Tax

Question 114

Multiple Choice

  Refer to the above figure in which S is the before-tax supply curve and S<sub>t</sub> is the supply curve after an excise tax is imposed.The burden of this tax is borne: A)  equally by consumers and producers. B)  most heavily by consumers. C)  most heavily by producers. D)  only by consumers. Refer to the above figure in which S is the before-tax supply curve and St is the supply curve after an excise tax is imposed.The burden of this tax is borne:


A) equally by consumers and producers.
B) most heavily by consumers.
C) most heavily by producers.
D) only by consumers.

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