A specific tax will be imposed on a good.The supply and demand curves for the good are shown in the diagram below.Given this information,the burden of the tax:
A)is shared about evenly between consumers and producers.
B)falls mostly on consumers.
C)falls mostly on producers.
D)cannot be determined without more information on the price elasticities of supply and demand.

Question

A specific tax will be imposed on a good.The supply and demand curves for the good are shown in the diagram below.Given this information,the burden of the tax: 
A)is shared about evenly between consumers and producers. 
B)falls mostly on consumers. 
C)falls mostly on producers. 
D)cannot be determined without more information on the price elasticities of supply and demand.

Quizplus · Accepted Answer

The Answer of A specific tax will be imposed on a good.The supply and demand curves for the good are shown in the diagram below.Given this information,the burden of the tax: 
A)is shared about evenly between consumers and producers. 
B)falls mostly on consumers. 
C)falls mostly on producers. 
D)cannot be determined without more information on the price elasticities of supply and demand.

A Specific Tax Will Be Imposed on a Good