-In the figure above, imposing a tax on the product results in a division in which

Question

Quizplus · Accepted Answer

When a tax is imposed on a product, it typically raises the price that buyers pay and can also lower the price that sellers receive. The distribution of the tax burden depends on the elasticities of supply and demand. Without a specific figure or additional details, the most accurate general statement is that the tax burden can be shared between buyers and sellers, not exclusively borne by one side. However, without seeing the figure or having more context, it's challenging to determine the exact distribution of the tax burden. The correct choice should reflect the shared burden, but given the options and the usual misunderstanding of tax incidence, the response might be aiming to highlight that it's a misconception that only one side bears the cost. However, without a figure or more context, this answer is based on general economic principles.

-In the Figure Above, Imposing a Tax on the Product