How is the tax incidence split between buyers and sellers if the consumer pays \$1.50 more and the seller receives \$1 less?

• A. The consumer bears 50% and the seller bears 50% of the tax burden.
• B. The consumer bears 70% and the seller bears 30% of the tax burden.
• C. The consumer bears 40% and the seller bears 60% of the tax burden.
• D. The consumer bears 60% and the seller bears 40% of the tax burden.

Answer: (D)