Figure 6-30

-Refer to Figure 6-30.In which market will the tax burden be most equally divided between buyers and sellers?

Question

Figure 6-30

-Refer to Figure 6-30.In which market will the tax burden be most equally divided between buyers and sellers?

Quizplus · Accepted Answer

In panel (c), the supply and demand are more elastic, meaning that both buyers and sellers have more flexibility to adjust to the tax. This leads to a more equal division of the tax burden between buyers and sellers. In panels (a) and (b), one side of the market (either buyers or sellers) has a more inelastic curve, leading to a greater burden on that side.

Figure 6-30 -Refer to Figure 6-30.In Which Market Will the Tax Burden