Figure demand tax the figure illustrates a market for

10. (Figure: Demand Tax) The figure illustrates a market for gasoline with a $1 tax imposed on the
buyers. What price do sellers receive for a gallon of gasoline in this market?
A. $3.50
B. $3
C. $2.50
D. between $2.50 and $3.50, depending on the elasticity of supply
11.
The government can choose between taxing buyers of grapes at $1.00 per pound or taxing the
sellers of grapes at $1.00 per pound. Which of the following statements is TRUE?
I. The choice most beneficial to buyers is placing the $1.00 tax on sellers.
II. The choice most beneficial to sellers is placing the $1.00 tax on buyers.
III. Either choice will have the same effect on both buyers and sellers.

12. (Table: Unit Taxes) In the accompanying table, what price will the buyers pay with the $4 tax?
13. Suppose that there is a tax of $5 per unit, and the demand curve is more elastic than the supply
curve. Which of the following statements could be TRUE?