The demand curve for rutabagas is a straight line with slope 23 and the supply curve is a straight line with slope 2. Suppose that a new tax of $3 per sack of rutabagas is introduced. Please show work!
A) The price paid by demanders rises by more than the price received by supplier’s falls.
B) The price paid by demanders rises by more than $3
C) The total number of rutabagas purchased increases
D) The price received by more than the price paid by demanders rises
E) The price paid by demanders rises by the same amount as the price received by supplier’s falls