The demand for rutabagas is Q = 2,000 300P and the supply of rutabagas is Q

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The demand for rutabagas is Q = 2,000 − 300P and the supply of rutabagas is Q = −100 + 100P. Who bears the statutory incidence of a $2 per unit tax on the sale of rutabagas? Who bears the economic incidence of this tax?

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Public Finance and Public Policy

ISBN: 978-1464143335

5th edition

Authors: Jonathan Gruber

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Question Posted: Nov 29, 2017 06:36 AM

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The demand for rutabagas is Q = 2,000 300P and the supply of rutabagas is Q

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If the tax is on the sale of rutabagas the buyer bears the statutory incidence sinc...View the full answer

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