Exhibit 5-30
-Refer to Exhibit 5-30. Consumers will pay a greater share of a new tax under supply curve S' than under supply curve S.

Name: Exhibit 5-30 -Refer to Exhibit 5-30. Consumers will pay a greater share of a new tax under supply curve S' than under supply curve S.
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Question

Exhibit 5-30 
-Refer to Exhibit 5-30. Consumers will pay a greater share of a new tax under supply curve S' than under supply curve S.

Quizplus · Accepted Answer

The steeper the supply curve, the greater the burden of the tax falls on consumers. Therefore, consumers will pay a greater share of the tax under supply curve S'.

Exhibit 5-30 -Refer to Exhibit 5-30. Consumers Will Pay a Greater Share