Figure 6-36
-Refer to Figure 6-36.If the government places a $2 tax in the market,the seller bears $2 of the tax burden.

Name: Figure 6-36 -Refer to Figure 6-36.If the government places a $2 tax in the market,the seller bears $2 of the tax burden.
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Question

Figure 6-36 
-Refer to Figure 6-36.If the government places a $2 tax in the market,the seller bears $2 of the tax burden.

Quizplus · Accepted Answer

The tax burden is typically shared between buyers and sellers depending on the price elasticity of demand and supply, not entirely borne by the seller.

Figure 6-36 -Refer to Figure 6-36.If the Government Places a $2 Tax