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The graph shows the market for pillows in which the government has imposed a tax of $6 per pillow on sellers. Draw a point
The graph shows the market for pillows in which the government has imposed a tax of $6 per pillow on sellers. Draw a point to show the price of a pillow with no tax. Label it 1. Draw a point to show the price paid by buyers following the tax. Label it 2. Draw a point to show the price received by sellers following the tax. Label it 3. The tax is O A. split between the seller and the buyer, and the buyer pays more than the seller B. paid by the buyers because tax is always added to the sale price at the check-out C. split evenly between the seller and the buyer O D. paid by the sellers because it is imposed on the sellers by the government Price (dollars per pillow) 16 14- 12- 10- 8- 4- 2+ 0- 0 S + tax S X *I* D 2 8 10 Quantity (millions of pillows per year) 12
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