in-a-market-where-a-4-tax-is-imposed-if-the-price-to-consumers-increases-by-2-an

Question

In a market where a $4 tax is imposed, if the price to consumers increases by $2 and the price to suppliers decreases by $2, how is the tax burden shared?

Accepted Answer

Equally between consumers and suppliers.

Answer

Entirely by consumers.

Answer

Entirely by suppliers.

Answer

Mostly by consumers.

In a market where a \$4 tax is imposed, if the price to consumers increases by \$2 and the price to suppliers decreases by \$2, how is the tax burden shared?