Exhibit 19-2 ​ Refer to Exhibit 19-2. the Market for Good X Is

Multiple Choice

Exhibit 19-2 ​

Refer to Exhibit 19-2. 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