The graphs below illustrate the market for a product on which an excise tax has been imposed by government. Refer to the below graph. The excise tax on this product as shown in the graph is ultimately paid:
A. 100 percent by consumers
B. 100 percent by producers
C. 75 percent by consumers and 25 percent by producers
D. 50 percent by consumers and 50 percent by producers
D. 50 percent by consumers and 50 percent by producers
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Explain how each of the following events affect the supply of loanable funds curve:
a) The economy is in a recession so people's disposable income is lower. b) The stock market is booming so the people's wealth is higher. c) Fewer college graduates are finding jobs so expected future income is lower. d) The real interest rate increases.
If domestic savings is less than domestic investment, then
A) reserve assets will increase. B) the government runs a budget deficit. C) there will be negative foreign investment. D) a trade surplus must result.