Price (dollars per bucket) 16 15 14 13 12 10 200 300 400 500 600 700 800 Quantity (buckets) The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from So to S1. The tax incidence is A) such that buyers pay $1 per bucket and sellers pay $2 per bucket. B) split equally between buyers and sellers, each paying $1 per bucket. C) such that buyers pay $2 per bucket and sellers pay $1 per bucket. D) split equally between buyers and sellers, each paying $2 per bucket. %3D

Price (dollars per bucket) 16 15 14 13 12 10 200 300 400 500 600 700 800 Quantity (buckets) The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from So to S1. The tax incidence is A) such that buyers pay $1 per bucket and sellers pay $2 per bucket. B) split equally between buyers and sellers, each paying $1 per bucket. C) such that buyers pay $2 per bucket and sellers pay $1 per bucket. D) split equally between buyers and sellers, each paying $2 per bucket. %3D

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 9MC

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