Suppose That a Specific Tax of $3 Is Imposed on Producers

Multiple Choice

Suppose that a specific tax of $3 is imposed on producers of bread.The bread market supply is Qs = 10 + 0.5P and the bread market demand is Qd = 100-P.What is the producers' tax burden?

A) Producers' tax burden is $1.30.
B) Producers' tax burden is $3.00.
C) Producers' tax burden is $2.00.
D) Producers' tax burden is $2.30