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Suppose the market demand for rutabagas is Q D = 10 - 0.25P and the Q S = 0.15P,where P is the price per box
- Suppose the market demand for rutabagas is QD= 10 - 0.25P and the QS= 0.15P,where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the relative burden of this rutabaga tax between buyers and sellers?
- A.consumers pay 62.5% of the tax and sellers pay 37.5%
- B.consumers pay 50% of the tax and sellers pay 50%
- C.consumers pay 37.5% of the tax and sellers pay 62.5%
- D.sellers pay 100% of this tax because the government accessed the tax on sellers.
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