Figure 6-13

-Refer to Figure 6-13. Suppose buyers, rather than sellers, were required to pay this tax (in the same amount per unit as shown in the graph). Relative to the tax on sellers, the tax on buyers would result in

Question

Figure 6-13
 
-Refer to Figure 6-13. Suppose buyers, rather than sellers, were required to pay this tax (in the same amount per unit as shown in the graph). Relative to the tax on sellers, the tax on buyers would result in

Quizplus · Accepted Answer

When a tax is imposed, whether it is on buyers or sellers does not affect the total amount of tax revenue collected by the government. The division of the tax burden between buyers and sellers depends on the elasticities of supply and demand, not on who officially pays the tax.

Figure 6-13 -Refer to Figure 6-13. Suppose Buyers, Rather Than Sellers, Were