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

Multiple Choice

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 S₁ to S₂.Approximately what percentage of the tax do producers end up paying?

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