Graph 6-9
-Refer to Graph 6-9.In which market will the majority of a tax be paid by the seller?

Question

Graph 6-9 
-Refer to Graph 6-9.In which market will the majority of a tax be paid by the seller?

Quizplus · Accepted Answer

Market a is the only market where the majority of the tax burden is on the seller, as the supply curve is relatively inelastic compared to the demand curve. In markets b and c, the demand curve is relatively more inelastic compared to the supply curve, meaning that the majority of the tax burden will be borne by the buyers.

Graph 6-9 -Refer to Graph 6-9.In Which Market Will the Majority of the Majority