139) When a tax is collected from the buyers in a market,

the tax burden falls most heavily on the buyers.

the buyers bear the burden of the tax

the sellers bear the burden of the tax

the tax burden on the buyers and sellers is the same as an equivalent tax collected from the sellers

Answer is:

the tax burden on the buyers and sellers is the same as an equivalent tax collected from the sellers

places a tax wedge of Rs.1.00 between the price the buyers pay and the price the sellers receive

decreases the price the sellers receive by Rs.1.00 per litre

increases the price the buyers pay by Rs.1.00 per litre

increases the price the buyers pay by precisely Rs.0.50 and reduces the price received by sellers by precisely Rs.0.50

Answer is:

both supply and demand are elastic

both supply and demand are inelastic

demand is inelastic and supply is elastic

demand is elastic and supply is inelastic

Answer is:

falls more heavily on sellers.

falls entirely on sellers

falls more heavily on buyers

is evenly distributed between buyers and sellers

Answer is:

both supply and demand are inelastic

demand is elastic and supply is inelastic

both supply and demand are elastic

demand is inelastic and supply is elastic

Answer is: