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The vertical distance between points A and B represents a tax in the market. Price 44 Supply 40 + 36 + 32 + 28 +
The vertical distance between points A and B represents a tax in the market. Price 44 Supply 40 + 36 + 32 + 28 + L-- - - - 24 20 + 16 12 + Demand 10 15 20 25 30 35 40 45 50 55 60 Quantity Refer to Figure 8-7. Which of the following statements summarizes the incidence of the tax? O A. For each unit of the good that is sold, buyers bear one-half of the tax burden, and sellers bear one-half of the tax burden. O B. For each unit of the good that is sold, buyers bear one-third of the tax burden, and sellers bear two-thirds of the tax burden. O) C. For each unit of the good that is sold, buyers bear one-fourth of the tax burden, and sellers bear three-fourths of the tax burden. O) D. For each unit of the good that is sold, buyers bear three-fourths of the tax burden, and sellers bear one-fourth of the tax burden
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