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.

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24 November, 01:07

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Sharon Choi · Answer 1

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.