Suppose Buyers of Fountain Drinks Are Required to Send $0

Multiple Choice

Suppose buyers of fountain drinks are required to send $0.50 to the government for every fountain drink they buy.Further,suppose this tax causes the effective price received by sellers of fountain drinks to fall by $0.20 per drink.Which of the following statements is correct?

A) This tax causes the demand curve for fountain drinks to shift downward by $0.50 at each quantity.
B) The price paid by buyers is $0.30 per drink more than it was before the tax.
C) Forty percent of the burden of the tax falls on sellers.
D) All of the above are correct.