Figure 6-27

-Refer to Figure 6-27.If the government places a $2 tax in the market,the seller 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 seller bears $2 of the tax burden.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

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

Quizplus · Accepted Answer

It is not possible to determine from the information provided which party - buyers or sellers - bears the tax burden. The incidence of the tax depends on the elasticity of supply and demand in the market.

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