how-is-the-tax-incidence-split-between-buyers-and-sellers-if-the-consumer-pays-1

Question

How is the tax incidence split between buyers and sellers if the consumer pays $1.50 more and the seller receives $1 less?

Accepted Answer

The consumer bears 60% and the seller bears 40% of the tax burden.

Answer

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

Answer

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

Answer

The consumer bears 40% and the seller bears 60% of the tax burden.

How is the tax incidence split between buyers and sellers if the consumer pays \$1.50 more and the seller receives \$1 less?