The following figure depicts the market for a certain good and the incidence of a tax on consumers.

-Refer to the figure above.The incidence of the tax of consumers is ________.

Question

The following figure depicts the market for a certain good and the incidence of a tax on consumers.
 
-Refer to the figure above.The incidence of the tax of consumers is ________.

Quizplus · Accepted Answer

The incidence of the tax on consumers is represented by the area above the original equilibrium price and below the new price consumers pay after the tax, which is Region 2.

The Following Figure Depicts the Market for a Certain Good