Figure 8-7
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-7.Which of the following statements summarizes the incidence of the tax?
A)For each unit of the good that is sold,buyers bear one-half of the tax burden,and sellers bear one-half of the tax burden.
B)For each unit of the good that is sold,buyers bear one-third of the tax burden,and sellers bear two-thirds of the tax burden.
C)For each unit of the good that is sold,buyers bear one-fourth of the tax burden,and sellers bear three-fourths of the tax burden.
D)For each unit of the good that is sold,buyers bear three-fourths of the tax burden,and sellers bear one-fourth of the tax burden.

Question

Figure 8-7
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-7.Which of the following statements summarizes the incidence of the tax?
A)For each unit of the good that is sold,buyers bear one-half of the tax burden,and sellers bear one-half of the tax burden. 
B)For each unit of the good that is sold,buyers bear one-third of the tax burden,and sellers bear two-thirds of the tax burden. 
C)For each unit of the good that is sold,buyers bear one-fourth of the tax burden,and sellers bear three-fourths of the tax burden. 
D)For each unit of the good that is sold,buyers bear three-fourths of the tax burden,and sellers bear one-fourth of the tax burden.

Quizplus · Accepted Answer

For each unit of the good that is sold, buyers bear one-half of the tax burden, and sellers bear one-half of the tax burden.

Figure 8-7 the Vertical Distance Between Points a and B Represents a Represents