Figure 6-11

-Refer to Figure 6-11.In which markets will the tax be most equally divided between the buyer and the seller

Question

Figure 6-11
 
-Refer to Figure 6-11.In which markets will the tax be most equally divided between the buyer and the seller

Quizplus · Accepted Answer

In market (c) and (d), the tax burden is equally shared between the buyers and sellers as the supply and demand curves are perfectly elastic, meaning that sellers and buyers are equally responsive to the tax. In market (a) and (b), the burden falls more heavily on either buyers or sellers depending on the slope of the curves.

Figure 6-11 -Refer to Figure 6-11.In Which Markets Will the Tax Be