Multiple Choice
Suppose buyers of vodka are required to send $5.00 to the government for every bottle of vodka they buy.Further,suppose this tax causes the effective price received by sellers of vodka to fall by $3.00 per bottle.Which of the following statements is correct?
A) This tax causes the demand curve for vodka to shift downward by $5.00 at each quantity of vodka.
B) The price paid by buyers is $2.00 per bottle more than it was before the tax.
C) Sixty percent of the burden of the tax falls on sellers.
D) All of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
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