The market for books initially has no taxes and is in competitive equilibrium. 

Then a tax of $6 a book is imposed on the sellers of books.

The tax paid by the seller is ______________a book and the tax paid by the buyer is ______________a book

a. $4; $0

b. $1; $3

c. $0; $4

d. $2; $2 

The graph shows the market for books.

 

Price (dollars per book) 10- 8- is 4- 2- D D-tax on buyers of 10 Quantity (millions of books per year)