if-the-consumer-pays-180-more-and-the-seller-receives-1-less-how-is-the-tax-inci

Question

If the consumer pays $$1.80 more and the seller receives 1 $$less, how is the tax incidence split?

Accepted Answer

The consumer bears 64% and the seller bears 36% of the tax burden.

Answer

The consumer bears 50% and the seller bears 50% of the tax burden.

Answer

The consumer bears 36% and the seller bears 64% of the tax burden.

Answer

The consumer bears 70% and the seller bears 30% of the tax burden.

If the consumer pays \$1.80 more and the seller receives \$1 less, how is the tax incidence split?