Use the figure below to answer the following question(s) .
Figure 4-7
-Refer to Figure 4-7. The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S₁ to S₂. Which of the following states the actual burden of the tax?

Question

Use the figure below to answer the following question(s) .
Figure 4-7

-Refer to Figure 4-7. The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S₁ to S₂. Which of the following states the actual burden of the tax?

Quizplus · Accepted Answer

The actual burden of the tax is shared between buyers and sellers. The supply curve shift indicates that sellers bear $.10 and buyers bear $.50 of the tax.

Use the Figure Below to Answer the Following Question(s)