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-The Above Figure Shows the Market for Buckets of Golf

Question 34

Multiple Choice

  -The above figure shows the market for buckets of golf balls at the driving range.A new leisure time tax is placed on suppliers in this market,shifting the supply curve from S0 to S1.The tax incidence is A) split equally between buyers and sellers,each paying $1 per bucket. B) split equally between buyers and sellers,each paying $2 per bucket. C) such that buyers pay $2 per bucket and sellers pay $1 per bucket. D) such that buyers pay $1 per bucket and sellers pay $2 per bucket. E) such that sellers pay all of the tax.
-The above figure shows the market for buckets of golf balls at the driving range.A new leisure time tax is placed on suppliers in this market,shifting the supply curve from S0 to S1.The tax incidence is


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

Correct Answer:

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