Question 13 (1 point)

If the slope of the demand and supply curves were the same, who would pay the $2 tax on the wine:

Question 13 options:

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 tax amount would be split 60%/40% with the consumer paying 60% of the tax amount.

C)

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.

D)

The consumer would pay 100% of the $2 tax amount. That is, the consumer would be willing to pay all of the tax amount.