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Suppose D1 represents the demand curve for paperback novels, D2 represents the demand curve for gasoline,S1 represents the supply curve for paperback novels and S2 represents the supply curve for gasoline. Afterthe imposition of a $2 tax on paperback novels and on gasoline, the
a. sellers of gasoline bear a higher burden of the $2 tax than sellers of paperback novels.
b. buyers of gasoline bear a higher burden of the $2 tax than buyers of paperback novels.c. buyers of gasoline bear an equal burden of the $2 tax as buyers of paperback novels.
d. Both a) and b) are correct.
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