Question
Please make a diagram of market equilibrium and show how a tax on consumer of $50 per unit of a good affects the quantity and
Please make a diagram of market equilibrium and show how a tax on consumer of $50 per unit of a good affects the quantity and price of that good. In another diagram, show how a tax of $50 on sellers of the good affects the quantity and price of the good. Suppose the government removes a tax on buyers of a good and levies a tax of the same size on sellers of the good. How does this change in tax policy affect the price that buyers pay sellers for this good, the amount buyers are out of pocket including the tax, and the quantity of the good sold?
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