Here are the multiple choice options given 1A0 B4 C15 D 12 2

Using the graph in the photo. Answer the following questions. 1. In the left hand graph the buyer burden is? 2. In the left hand graph the seller burden is? 3. In the right hand graph the buyer burden is? 4. In the right hand graph the seller burden is? 5. In the left hand graph the total tax collected is? 6. In the right hand graph the total tax collected is? Left) Right Price (S Price (S) S Tax $4 $12 $3 $15 $1 0 Quantity

Solution

The correct option is C) because when demand is perfectly inelastic burden is faced by consumer only. The option is A) under perfectly inelastic demand the complete burden of tax falls on consumer. The correct option is D, because burden = New price(After tax) –old price. The correct option is B, because burden on seller = P-(P*-tax) where P* is the new quilibrium price. For solution to other parts please post as a different question. Can do only four sub parts at a time.