Answered: question: Which of the following…

question: Which of the following statements is most true? A) Producers will pay the entire tax. B) Consumers will pay 1/3 of the tax. C) Producers will pay 1/3 of the

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 10P

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Question

Use the graph to answer the following question:

Which of the following statements is most true?

A) Producers will pay the entire tax.

B) Consumers will pay 1/3 of the tax.

C) Producers will pay 1/3 of the tax.

D) Consumers will pay the entire tax.

The graph below represents a $3 per unit tax on sellers.
S1
Price
$12.00
tax
So
R
$9.00
$7.00
$6.00
D

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