Suppose the government imposes a $2 on this market.

Suppose D1 represents the demand curve for paperback novels, D2 represents the demand curve for gasoline, and S1 represents the supply curve for paperback novels and gasoline. After the imposition of the $2 on paperback novels and on gasoline, the:

(A)
buyers of gasoline bear a higher burden of the $2 tax than buyers of paperback novels.
(B)
sellers of gasoline bear a higher burden of the $2 tax than sellers 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.

The average u.s. household has $178,600 in life insurance. the standard deviation is $25,500. a local insurance agent would like to see how households in his city compare to the national average, and selects a simple random sample of 30 households from the city. for the households in the city, the average amount of life insurance is $188,800. a. based on the sample results, construct a 95% confidence interval for the true average amount of life insurance for households in the city. b. test the h0 : $178,600 ? ? to determine if the city's sample average is significantly different from the u.s. average amount of life insurance per household. use the conventional levels of significance.