Use the figure below to answer the following question(s) . Figure 4-7
Refer to Figure 4-7. The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S₁ to S₂. Which of the following states the actual burden of the tax?

Question

Use the figure below to answer the following question(s) . Figure 4-7

Refer to Figure 4-7. The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S₁ to S₂. Which of the following states the actual burden of the tax?

Quizplus · Accepted Answer

The Answer of Use the figure below to answer the following question(s). Figure 4-7 Refer to Figure 4-7. The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S₁ to S₂. Which of the following states the actual burden of the tax? A) $.50 for buyers and $.10 for sellers B) $.50 for sellers and $.10 for buyers C) The entire $.60 falls on sellers. D) The entire $.60 falls on buyers.

Use the Figure Below to Answer the Following Question(s)