In: Economics
1 - Option B
On the demand for that good.
The tax on the buyer at the initial level affects the demand and after that the equilibrium price and quantity are affected.
2 - Option D
Down by $ 0.10 per kisses
This is because of the levy of tax , the price will rise leading to fall in demand for kisses.
3 - Option B
On the buyers and the sellers
This is because the burden of tax will be divided among buyer and seller based upon their elasticities. The side with lesser elasticity bears greater burden. Government receives tax and not pays it. Hence Option B will be correct
4 - Option A
Demand will not change and supply shifts to left
The tax will increase the cos of production leading to decrease in supply and leftward shift. Hence Option A will be correct.