To identify the burden of a per-unit tax on consumers, we have to use the aggregate marginal willingness to pay curve whenever the underlying good is not quasilinear.

Question

Quizplus · Accepted Answer

The burden of a per-unit tax on consumers can be identified using the demand curve, which reflects the marginal willingness to pay, regardless of whether the underlying good is quasilinear or not. The concept of quasilinearity is not a prerequisite for analyzing tax incidence using demand and supply curves.

To Identify the Burden of a Per-Unit Tax on Consumers