Use the figure below to answer the following question(s) . Figure 4-8
Refer to Figure 4-8. The supply curve S₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting 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 4-8

Refer to Figure 4-8. The supply curve S₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting 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 4-8 Refer to Figure 4-8. The supply curve S₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S₁ to S₂. Which of the following states the actual burden of the tax? A) $10 for buyers and $30 for sellers B) $30 for buyers and $10 for sellers C) The entire $40 falls on sellers. D) The entire $40 falls on buyers.

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