Figure 6-24
Suppose the government imposes a $2 on this market.

-Refer to Figure 6-24.The buyers and sellers will bear an eaqual share of the tax burden if the demand is

Question

Figure 6-24
Suppose the government imposes a $2 on this market.
 
-Refer to Figure 6-24.The buyers and sellers will bear an eaqual share of the tax burden if the demand is

Quizplus · Accepted Answer

The tax burden is shared equally when the demand and supply curves have the same elasticity. In this case, D1 and S1 would likely have similar elasticities, leading to an equal tax burden.

Figure 6-24 Suppose the Government Imposes a $2 on This Market