Question: Use the graph below to answer the next four questions. A tax on buyers has shifted the demand from D 1 to D 2 .
Use the graph below to answer the next four questions. A tax on buyers has shifted the demand from to
How much is the tax?
A $ per unit
B $ per unit
C $ per unit
D $ per unit
Before the tax, the "price on the price tag" was $ After the tax, the price on the price tag is As we did in class, assume the price on the price tag does not include tax. This is similar to how prices shown at Target are pretax prices
A $
B $
C $
D $
On a perunit basis, how is the economic burden shared between the buyer and the seller?
A Buyer pays $ seller pays $
B Buyer pays $ seller pays $
C Buyer pays $ seller pays $
D Buyer pays $ seller pays $
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