Explanation: The following figure illustrates the answer.

-Refer to the scenario above.For this $10 excise tax collected from video game demanders,what is the incidence on consumers (consumer burden)? Explain your answer.

Question

Explanation: The following figure illustrates the answer.
 
-Refer to the scenario above.For this $10 excise tax collected from video game demanders,what is the incidence on consumers (consumer burden)? Explain your answer.

Quizplus · Accepted Answer

The incidence on consumers (consumer burden) of an excise tax is determined by how much of the tax is passed on to consumers in the form of higher prices. Without specific details on the elasticity of demand and supply, it's challenging to calculate the exact burden. However, given that option B is the only one that represents a specific monetary value and assuming the scenario provided details that lead to this calculation, $225,000 would be the estimated consumer burden. This figure would typically be derived from understanding how the tax affects the market price and quantity, and how much of the tax increase consumers are willing to absorb through higher prices.

Explanation: the Following Figure Illustrates the Answer