"The Tax on Insulin in the Philippines Is Anywhere Between

Multiple Choice

"The tax on insulin in the Philippines is anywhere between 10 and 20 percent. If you are rich and living in the Philippines, this is not a problem, but if you are poor, then insulin becomes something that you cannot afford." If the government places the tax on sellers, what is the most likely tax incidence?

A) The vast majority of the tax is paid by buyers.
B) The vast majority of the tax is paid by sellers.
C) The tax is split equally between buyers and sellers.
D) Sellers pay all the tax.