Consider this market in which a $2 per unit tax has been imposed on the seller. Before the tax, the equilibrium price was $5 according to our discussion of tax incidence, which party pays the larger share of the tax?

Take Quiz Consider this market in which a $2 per-unit tax has been imposed on the seller. Before the tax, the equilibrium price was $5, S with tax P $2 A $6.50 $5 B $4.50 C D 90 100 Q According to our discussion of tax incidence, which party pays the larger share of the tax? The consumer. Consumers and sellers pay equal shares of the tax. It's impossible to tell without more information. The seller. @ % A CO NO 8