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(Figure: Market for Plastic Bags) in the Market for Plastic

Question 23

Multiple Choice

(Figure: Market for Plastic Bags) In the market for plastic bags shown here, the original equilibrium price is 50 cents per bag. In an effort to reduce plastics usage, a tax is then placed on the buyers of plastic bags. The incidence of the tax on the buyer is ____ % and the incidence of the tax on the seller is _____ %. (Figure: Market for Plastic Bags)  In the market for plastic bags shown here, the original equilibrium price is 50 cents per bag. In an effort to reduce plastics usage, a tax is then placed on the buyers of plastic bags. The incidence of the tax on the buyer is ____ % and the incidence of the tax on the seller is _____ %.   A) 60, 40 B) 20, 80 C) 40, 60 D) 50, 50


A) 60, 40
B) 20, 80
C) 40, 60
D) 50, 50

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