Refer to Figure 610 If a tax is imposed on the market in Fig

Refer to Figure 6.10. If a tax is imposed on the market in Figure 6.10, ________ will bear a larger share of the tax.

Select one:

a. the consumers

b. the producers

c. the government

d. no one

Solution

Correct answer is the producers. Reason is that the demand is very horizontal and supply is steep