Suppose buyers of vodka are required to send $5.00 to the government for every bottle of...

 

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Suppose buyers of vodka are required to send $5.00 to the government for every bottle of vodka they buy. Further, suppose this tax causes the effective price received by sellers of vodka to fall by $3.00 per bottle. Which of the following statements is correct? This tax causes the demand curve for vodka to shift downward by $5.00 at each quantity of vodka. b. a. C. d. The price paid by buyers is $2.00 per bottle more than it was before the tax. Sixty percent of the burden of the tax falls on sellers. All of the above are correct. Suppose buyers of vodka are required to send $5.00 to the government for every bottle of vodka they buy. Further, suppose this tax causes the effective price received by sellers of vodka to fall by $3.00 per bottle. Which of the following statements is correct? This tax causes the demand curve for vodka to shift downward by $5.00 at each quantity of vodka. b. a. C. d. The price paid by buyers is $2.00 per bottle more than it was before the tax. Sixty percent of the burden of the tax falls on sellers. All of the above are correct.

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ANSWER C Sixty percent of the burden of the tax falls on s... View the full answer