Economics

ing 2020 - Version 1- Requires Respondus LockDown Browse he Left:2:08:17 Bhavika Garg: Attempt 1 Question 38 (1 point) Wine: After the Covid-19 pandemic is eliminated and everything goes back to usual, the Governments are likely to want to find sources of revenue. You have a wine section in your store. You have heard that the government is considering applying a $2 per bottle tax on wine. If the slope of the demand and supply curves were the same, who would pay the $2 tax on the wine: (A) The tax amount would be split between the retail wine store owner (your store) and the consumer ($1 paid by consumer, and $1 paid by store owner) (B) The consumer would pay 100% of the $2 tax amount. That is, the consumer would be willing to pay all of the tax amount. (C) The tax amount would be split 60%/40% with the consumer paying 60% of the tax amount. (D) The retail wine store owner (your store) would absorb the $2 tax amount. That is, the retail wine store owner would pay 100% of the tax amount