Suppose there are 100 sellers in a market, and they each have one unit of a good to sell. There are 100 buyers in this market and the market clears with all of the good traded. Now, government imposes a sales tax on the good. The incidence of the tax is that $3 falls on the buyer and $2 on the seller. What is the maximum amount of revenue that the government may collect from the tax?

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The Answer of Suppose there are 100 sellers in a market, and they each have one unit of a good to sell. There are 100 buyers in this market and the market clears with all of the good traded. Now, government imposes a sales tax on the good. The incidence of the tax is that $3 falls on the buyer and $2 on the seller. What is the maximum amount of revenue that the government may collect from the tax?

Suppose There Are 100 Sellers in a Market, and They