The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays the entire tax. Draw the supply curve of coal. Label it S. Draw a second supply curve that shows the effect of the tax. Label it S + tax. The more .... the supply of coal, O A. elastic; the larger is the amount of the tax paid by the seller OB. elastic; the larger is the amount of the tax paid by the buyer OC. elastic; the more equally is the split of the tax between the buyer and the seller OD. inelastic; the larger is the amount of the tax paid by the buyer
The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays the entire tax. Draw the supply curve of coal. Label it S. Draw a second supply curve that shows the effect of the tax. Label it S + tax. The more .... the supply of coal, O A. elastic; the larger is the amount of the tax paid by the seller OB. elastic; the larger is the amount of the tax paid by the buyer OC. elastic; the more equally is the split of the tax between the buyer and the seller OD. inelastic; the larger is the amount of the tax paid by the buyer
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter5: Elasticity Of Demand And Supply
Section5.A: Appendix: Price Elasticity And Tax Incidence
Problem 2AQ
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