Suppose That a Specific Tax of $3 Is Imposed on Consumers

Multiple Choice

Suppose that a specific tax of $3 is imposed on consumers of bread.The bread market supply is Qs = 10 + 0.5P and the bread market demand is Qd = 100-P.What is the consumers' tax burden?

A) Consumers' tax burden is $1.30.
B) Consumers' tax burden is $1.00.
C) Consumers' tax burden is $1.50.
D) Consumers' tax burden is $0.30