Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Supply Tax
-(Figure: Supply Tax) In the accompanying pizza market, with a $2 tax imposed on the sellers, how much of the tax is paid by the buyers and how much of the tax burden is borne by the sellers?

A) Buyers pay all of the $2 tax.
B) Sellers pay all of the $2 tax.
C) Buyers pay $1.50 and sellers pay $0.50 of the tax.
D) Sellers pay $1.50 and buyers pay $0.50 of the tax.