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. www The more the supply of coal, OA. elastic; the larger is the amount of the tax paid by the seller OB. elastic; the more equally is the split of the tax between the buyer and the seller OC. inelastic; the larger is the amount of the tax paid by the buyer OD. elastic; 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. www The more the supply of coal, OA. elastic; the larger is the amount of the tax paid by the seller OB. elastic; the more equally is the split of the tax between the buyer and the seller OC. inelastic; the larger is the amount of the tax paid by the buyer OD. elastic; the larger is the amount of the tax paid by the buyer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If buyers pay more of a tax than do the sellers اختر أحد الخيارات a. demand is more elastic than supply O .b. supply is more elastic than demand O C. None of the above answers is correct O .d. the equilibrium price paid by buyers rises by less than half the amount of the tax „e. the amount of tax revenue collected by the government is almost zero