The excise tax on bourbon as described in the diagram is ultimately paid:

In the graph above:



S0 = supply curve for bourbon (seller's supply)

D = demand curve for bourbon

St = supply for bourbon plus excise tax on bourbon

(effective supply as seen by buyers)

tax = an excise tax on bourbon (of $20 per case)



A. By buyers only



B. By sellers only



C. 40 percent by buyers and 60 percent by sellers



D. 60 percent by buyers and 40 percent by sellers

D. 60 percent by buyers and 40 percent by sellers