Weekly sales of artisan cupcakes are 30,000 30,000\,30,000 and the market price is £2.50 £2.50\,£2.50 per cupcake. The government introduces a new specific indirect tax of 40p40\text{p}40p per cupcake. Sales fall to 25,000 25,000\,25,000 a week and the market price rises to £2.75 £2.75\,£2.75 per cupcake.
The share of the total weekly tax that is borne by cupcake producers is
£3,750£3,750£3,750
£4,500£4,500£4,500
£6,250£6,250£6,250
£10,000£10,000£10,000
