Figure 6-25

-Refer to Figure 6-25.In which market will the tax burden be most equally divided between buyers and sellers?

Question

Figure 6-25

-Refer to Figure 6-25.In which market will the tax burden be most equally divided between buyers and sellers?

Quizplus · Accepted Answer

In market (c), the equilibrium price is closer to the initial price before the tax was imposed, and the quantity transacted is closer to the initial quantity. This indicates that neither the buyers nor the sellers have a significant advantage in the market, resulting in a more equal division of the tax burden between buyers and sellers. In markets (a) and (b), one group may have a higher burden than the other due to a more significant shift in the equilibrium price and quantity transacted.

Figure 6-25 -Refer to Figure 6-25.In Which Market Will the Tax Burden