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Consider a market where the market supply and demand curve are as shown in the following picture. (You can assume this picture is to scale.)
Consider a market where the market supply and demand curve are as shown in the following picture. (You can assume this picture is to scale.) Price ($ per unit of output) Supply Demand Output Suppose the government imposes a per-unit tax on this good. In this market, the burden of the tax: O is shared about evenly between consumers and producers. O falls mostly on consumers. O falls mostly on producers. O cannot be determined without more information on the price elasticities of supply and demand. O is such that there is no deadweight loss
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