Question: 1. Given the supply and demand diagram given in Figure 1, if a tax of $12 is placed on the supplier, _________ will be borne by the seller, while ________ will be borne by the buyer
A. $12, $0
B. $6, $6
C. $4, $6
D. $6, $4
2. Which of the following tax deductions would NOT be recommended under the Haig-Simons definition of comprehensive income?
A. Casualty theft and losses
B. Business travel expenses
C. Medical expenses
D. Home mortgage interest