Multiple Choice
Use the figure below to answer the following question(s) .
Figure 4-8
-Refer to Figure 4-8.The supply curve S₁ and the demand curve D indicate initial conditions in the market for soft coal.A $40-per-ton tax on soft coal is levied,shifting the supply curve from S₁ to S₂.Which of the following states the actual burden of the tax?
A) $10 for buyers and $30 for sellers
B) $30 for buyers and $10 for sellers
C) The entire $40 falls on sellers.
D) The entire $40 falls on buyers.
Correct Answer:

Verified
Correct Answer:
Verified
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