Multiple Choice
Who will bear the burden of a $0.50 tax placed on soda suppliers (consumer or seller) in a soda market where Qd = 225-10P and Qs = 50 + 15P?
A) Consumers pay $0.30 of the tax, bearing the burden.
B) Consumers pay $0.25 of the tax, bearing the burden.
C) Sellers pay $0.25 of the tax and bear the burden.
D) Sellers pay all of the tax and bear the burden.
Correct Answer:
Verified
Correct Answer:
Verified
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