QUESTION 45 Figure 6-19 0 100 Refer to Figure 6-19. Suppos se a tax of S2 per un

Question

QUESTION 45 Figure 6-19 0 100 Refer to Figure 6-19. Suppos se a tax of S2 per unit is imposed on this market. Which of the following is correct? a. Two-thirds of the burden of the tax will fail on buyers, and one-third of the burden of the tax vwill fall on sellers. b One-fourth of the burden of the tax will al on buyers, and thiee-fourths of the burden of the tay willfall on sellers. One-half of the burden of the tax will fall on buyers, and one-halt of the burden of the tax will fall on sellers d One-third of the burden of the tax will tll on buyers, and two-thirds of the burden of the tas will al on selfers. Save All A hk Save ond Sulbmit to suve and submit,Cek Save All Ansoers to suve all ansuers

Explanation / Answer

Question:- Suppose a tax of $2 per unit is imposed on this market. Which of the following is correct?

Answer:- One-half of the burden of the tax will fall on buyers, and one-half of the burden of the tax will fall on sellers.

Reason:- this is because of consumer surplus and producer surplus are equal

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