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 S0 to S1. The tax incidence is
A) split equally between buyers and sellers, each paying $1 per bucket.
B) split equally between buyers and sellers, each paying $2 per bucket.
C) such that buyers pay $2 per bucket and sellers pay $1 per bucket.
D) such that buyers pay $1 per bucket and sellers pay $2 per bucket.
E) such that sellers pay all of the tax.
D
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Refer to Scenario 5.4. What is the variance of the investment?
A) -75 B) 275 C) 3,150 D) 4,637.50 E) 8,125
For this question, assume that the economy is initially operating at the natural level of output. A reduction in consumer confidence will cause
A) an increase in the real wage in the medium run. B) a reduction in the real wage in the medium run. C) no change in the real wage in the medium run. D) ambiguous effects on the real wage in the medium run.