Suppose Sellers of Cologne Are Required to Send $2

Multiple Choice

Suppose sellers of cologne are required to send $2.25 to the government for every bottle of cologne they sell. Further, suppose this tax causes the price paid by buyers of cologne to rise by $1.35 per bottle. Which of the following statements is correct?

A) The effective price received by sellers is $0.90 per bottle less than it was before the tax.
B) Sixty percent of the burden of the tax falls on sellers.
C) This tax causes the demand curve for cologne to shift downward by $2.25 at each quantity of cologne.
D) This tax does not change the quantity of cologne bought and sold.