Figure 6-27

-Refer to Figure 6-27.If the government places a $2 tax in the market,the buyer bears $2 of the tax burden.

Name: Figure 6-27 -Refer to Figure 6-27.If the government places a $2 tax in the market,the buyer bears $2 of the tax burden.
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Question

Figure 6-27
 
-Refer to Figure 6-27.If the government places a $2 tax in the market,the buyer bears $2 of the tax burden.

Quizplus · Accepted Answer

The graph shows that when a $2 tax is imposed, both the buyer and seller share the burden of the tax equally, each paying $1. Therefore, the statement that the buyer bears the entire $2 tax burden is false.

Figure 6-27 -Refer to Figure 6-27.If the Government Places a $2 Tax