Exhibit 5-32
-Refer to Exhibit 5-32. The tax burden borne by consumers is:

Question

Exhibit 5-32 
-Refer to Exhibit 5-32. The tax burden borne by consumers is:

Quizplus · Accepted Answer

The tax burden borne by consumers is equal to the difference between the price paid by consumers after the tax and the price paid by consumers before the tax. In this case, the price before the tax is $120 and the price after the tax is $140. Therefore, the tax burden borne by consumers is $20. Since there are 7 consumers in the market, the total tax burden borne by consumers is $140 ($20 x 7), which is option C.

Exhibit 5-32 -Refer to Exhibit 5-32. the Tax Burden Borne by Consumers