The figure given below shows the demand curve in the U.S. and the cost curves in U.S. and India.Figure: 16.4
In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.MR: Marginal revenue curve in the U.S.
-The burden of a tax is mainly borne by the buyer if:

Question

The figure given below shows the demand curve in the U.S. and the cost curves in U.S. and India.Figure: 16.4
  In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.MR: Marginal revenue curve in the U.S.
-The burden of a tax is mainly borne by the buyer if:

Quizplus · Accepted Answer

When the demand for a good is relatively price inelastic, it means that consumers' purchasing behavior does not change much with a change in price. Therefore, if a tax is imposed, consumers are still likely to purchase the good at nearly the same quantity, bearing the majority of the tax burden.

The Figure Given Below Shows the Demand Curve in the U.S