For a given set of supply and demand curves, the horizontal location of the tax wedge depends on:
A) whether the tax is imposed on buyers or sellers.
B) the amount of the tax.
C) whether the tax is a short-run or a long-run tax.
D) the number of sellers.

Question

Quizplus · Accepted Answer

The horizontal location of the tax wedge is determined by the amount of the tax, as it represents the difference between the price buyers pay and the price sellers receive.

For a Given Set of Supply and Demand Curves, the Horizontal