The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays the entire tax. Draw the supply curve of coal. Label it S. Draw a second supply curve that shows the effect of the tax. Label it S + tax. The more .... the supply of coal, O A. elastic; the larger is the amount of the tax paid by the seller OB. elastic; the larger is the amount of the tax paid by the buyer OC. elastic; the more equally is the split of the tax between the buyer and the seller OD. inelastic; the larger is the amount of the tax paid by the buyer

The graph shows the demand curve for coal. The government imposes a tax on coal and the buyer pays the entire tax. Draw the supply curve of coal. Label it S. Draw a second supply curve that shows the effect of the tax. Label it S + tax. The more .... the supply of coal, O A. elastic; the larger is the amount of the tax paid by the seller OB. elastic; the larger is the amount of the tax paid by the buyer OC. elastic; the more equally is the split of the tax between the buyer and the seller OD. inelastic; the larger is the amount of the tax paid by the buyer

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section5.A: Appendix: Price Elasticity And Tax Incidence

Problem 2AQ

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