Multiple Choice
If a $5,000 tax is placed legally (statutorily) on the sellers of new automobiles and as a result the price of automobiles to consumers rises by $4,000, then the actual burden of the tax
A) falls completely on automobile buyers.
B) falls completely on automobile sellers.
C) is $4,000 on automobile buyers and $1,000 on sellers.
D) is $1,000 on automobile buyers and $4,000 on sellers.
Correct Answer:
Verified
Correct Answer:
Verified
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