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Exhibit 20-2 -Refer to Exhibit 20-2.The Market for Good X Is Initially

Question 2

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Exhibit 20-2
Exhibit 20-2 -Refer to Exhibit 20-2.The market for good X is initially in equilibrium at $5.The government then places a per-unit tax on good X,as shown by the shift of S<sub>1</sub> to S<sub>2</sub>.Approximately what percentage of the tax do consumers end up paying? A) 63 percent B) 45 percent C) 70 percent D) 55 percent E) 25 percent
-Refer to Exhibit 20-2.The market for good X is initially in equilibrium at $5.The government then places a per-unit tax on good X,as shown by the shift of S1 to S2.Approximately what percentage of the tax do consumers end up paying?


A) 63 percent
B) 45 percent
C) 70 percent
D) 55 percent
E) 25 percent

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