Figure 6-17

-Refer to Figure 6-17. If the government places a $2 tax in the market, the buyer pays $4.

Name: Figure 6-17 -Refer to Figure 6-17. If the government places a $2 tax in the market, the buyer pays $4.
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Question

Figure 6-17
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-Refer to Figure 6-17. If the government places a $2 tax in the market, the buyer pays $4.

Quizplus · Accepted Answer

When a government imposes a tax in a market, the burden of the tax is shared between buyers and sellers depending on the elasticity of demand and supply. The statement does not provide enough information to determine exactly how the $2 tax is divided between the buyer and seller.

Figure 6-17 ​

Figure 6-17