Figure 6-27

-Refer to Figure 6-27.If the government places a $2 tax in the market,the seller bears $1 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 $1 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 seller bears $1 of the tax burden.

Quizplus · Accepted Answer

The seller bears $1 of the tax burden because the supply curve shifts upward by $1, which means that the seller is willing to supply less of the good at any given price. This means that the seller is absorbing some of the tax burden.

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