The graph shows the market for pillows in which the government has imposed a sales tax of $6 per pillow on sellers. Draw a point to show the price of a pillow and the quantity of pillows bought and sold with no tax. Label it 1. Draw a point to show the price paid by buyers and the quantity of pillows bought following the tax. Label it 2. Draw a point to show the price received by sellers and the quantity of pillows sold following the tax. Label it 3. The tax is O A. split between sellers and buyers, with buyers paying more than sellers O B. paid by buyers and not sellers because tax is always added to the sale price at the check-out OC. paid by sellers and not buyers because the government imposed the tax on sellers O D. split evenly between sellers and buyers 16 14- 12- 10- 84 6- 4- 2- Price (dollars per pillow) S + tax on sellers S D 12 + 6 10 Quantity (millions of pillows per year) >>> Draw only the objects specified in the question.

The graph shows the market for pillows in which the government has imposed a sales tax of $6 per pillow on sellers. Draw a point to show the price of a pillow and the quantity of pillows bought and sold with no tax. Label it 1. Draw a point to show the price paid by buyers and the quantity of pillows bought following the tax. Label it 2. Draw a point to show the price received by sellers and the quantity of pillows sold following the tax. Label it 3. The tax is O A. split between sellers and buyers, with buyers paying more than sellers O B. paid by buyers and not sellers because tax is always added to the sale price at the check-out OC. paid by sellers and not buyers because the government imposed the tax on sellers O D. split evenly between sellers and buyers 16 14- 12- 10- 84 6- 4- 2- Price (dollars per pillow) S + tax on sellers S D 12 + 6 10 Quantity (millions of pillows per year) >>> Draw only the objects specified in the question.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 30CTQ: In a market where the supply curve is perfectly inelastic how does an excise tax affect the price...

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