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Question 48

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Use the following to answer question: Use the following to answer question:   -(Figure: Tax Incidence) Use Figure: Tax Incidence.All other things unchanged,the effect of an excise tax on gasoline in the short run is most likely illustrated by panel _____,and the greater share of the burden of the excise tax (shown by the tax wedge in each panel) is borne by _____. A) C;buyers B) D;sellers C) C;sellers D) D;buyers
-(Figure: Tax Incidence) Use Figure: Tax Incidence.All other things unchanged,the effect of an excise tax on gasoline in the short run is most likely illustrated by panel _____,and the greater share of the burden of the excise tax (shown by the tax wedge in each panel) is borne by _____.


A) C;buyers
B) D;sellers
C) C;sellers
D) D;buyers

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