Multiple Choice
Figure 4-20
Refer to Figure 4-20. Suppose the same S and D curves apply, and a tax of the same amount per unit as shown here is imposed. Now, however, the sellers of the good, rather than the buyers, are required to pay the tax to the government. Now, relative to the case depicted in the figure,
A) the burden on buyers will be larger and the burden on sellers will be smaller.
B) the burden on buyers will be smaller and the burden on sellers will be larger.
C) the burden on buyers will be the same and the burden on sellers will be the same.
D) The relative burdens in the two cases cannot be determined without further information.
Correct Answer:

Verified
Correct Answer:
Verified
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