Price (dollars per dose) The graph shows the market for a vital-to life drug on

Question

Price (dollars per dose) The graph shows the market for a vital-to life drug on which the govenment has imposed a tax of $2 per dose The buyer pays the entre tax Draw the demand curve for this drug Label t D S+tar The more the demand for the drug OA, elasic,the largeesthe amount ofthe tax paid bythe buyer ofthe drug O B. elaslec, the more equaly is the tax spit betwoen the buyer and the seler of the drug O C. nliasie: te more equly t st betuen the boyer and he seler of the drug OD. inelastic, the larger is the amount of the tax paid by the buyer of the drug Quantity (milions of doses per year x Draw only the objects specilied in the question Cick the grapnh, choose a tool in the palehe and tolow the instructions to create your graph y 2018 F11 F12 F9 F10 F7 F8

Explanation / Answer

answer is D

Tax burden falls more on the consumer when the demand of the good is more inelastic.

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