Who will bear the burden of a $0.50 tax placed on soda suppliers (consumer or seller) in a soda market where Qd = 225-10P and Qs = 50 + 15P?
A) Consumers pay $0.30 of the tax, bearing the burden.
B) Consumers pay $0.25 of the tax, bearing the burden.
C) Sellers pay $0.25 of the tax and bear the burden.
D) Sellers pay all of the tax and bear the burden.
A
Economics
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Which of the following have a perfectly inelastic supply curve?
a. a Picasso painting b. a bottle of 1995 Dom Perignon champagne c. Elvis' pink Cadillac d. All of the above have a perfectly inelastic supply curve
Economics
Figure 5-7
In Figure 5-7, budget line B compared to A clearly shows that the
a.
price of wine increased.
b.
price of beer decreased.
c.
price of beer increased.
d.
consumers' money income increased.
Economics