Multiple Choice
Figure 6-19 
-Refer to Figure 6-19.Suppose a tax of $2 per unit is imposed on this market.Which of the following is correct?
A) One-fourth of the burden of the tax will fall on buyers,and three-fourths of the burden of the tax will fall on sellers.
B) One-third of the burden of the tax will fall on buyers,and two-thirds of the burden of the tax will fall on sellers.
C) One-half of the burden of the tax will fall on buyers,and one-half of the burden of the tax will fall on sellers.
D) Two-thirds of the burden of the tax will fall on buyers,and one-third of the burden of the tax will fall on sellers.
Correct Answer:
Verified
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