(Figure: Market for Plastic Containers) The figure shows the market for large plastic containers, where the initial equilibrium price is $7. A tax is then placed on the SELLERS in this market. Use this figure to answer the following questions.
(a) What is the amount of the tax for each plastic container?
(b) What is the economic burden of the tax on the seller?
(c) What is the economic burden of the tax on the buyer?

Question

(Figure: Market for Plastic Containers) The figure shows the market for large plastic containers, where the initial equilibrium price is $7. A tax is then placed on the SELLERS in this market. Use this figure to answer the following questions.
  (a) What is the amount of the tax for each plastic container?
(b) What is the economic burden of the tax on the seller?
(c) What is the economic burden of the tax on the buyer?

Quizplus · Accepted Answer

The Answer of (Figure: Market for Plastic Containers) The figure shows the market for large plastic containers, where the initial equilibrium price is $7. A tax is then placed on the SELLERS in this market. Use this figure to answer the following questions.
  (a) What is the amount of the tax for each plastic container?
(b) What is the economic burden of the tax on the seller?
(c) What is the economic burden of the tax on the buyer?

(Figure: Market for Plastic Containers) the Figure Shows the Market