Figure 6-11
-Refer to Figure 6-11.Suppose the same supply and demand curves apply and a tax of the same amount per unit as shown here is imposed.Now,however,the buyers of the good,rather than the sellers,are required to pay the tax to the government.Now,relative to the case depicted in the figure,

Question

Figure 6-11 
-Refer to Figure 6-11.Suppose the same supply and demand curves apply and a tax of the same amount per unit as shown here is imposed.Now,however,the buyers of the good,rather than the sellers,are required to pay the tax to the government.Now,relative to the case depicted in the figure,

Quizplus · Accepted Answer

The economic incidence of a tax does not depend on who is legally required to pay it. The burden is determined by the relative elasticities of supply and demand, so the burden on buyers and sellers remains the same.

Figure 6-11 -Refer to Figure 6-11.Suppose the Same Supply and Demand Curves