If the demand and supply curves have equal slopes in absolute value, the burden of a commodity tax will be split equally regardless of on whom the tax is placed.

Question

Quizplus · Accepted Answer

When the demand and supply curves have equal slopes in absolute value, it implies that the elasticity of demand and supply is equal. In such a situation, the burden of the tax is equally shared by the consumers and producers, regardless of who the tax is imposed upon. Hence, the statement is true.

If the Demand and Supply Curves Have Equal Slopes in Absolute