18) Which of the following options best describes tax incidence? A) It equals to the loss in the social welfare measured by total surplus. B) It shows how tax burden is shared by buyers and sellers. C) It equals to the sum of new consumer and producer surplus resulted from tax. D) It is revenue government agency collects from buyers and sellers from imposing per unit tax.
18) Which of the following options best describes tax incidence? A) It equals to the loss in the social welfare measured by total surplus. B) It shows how tax burden is shared by buyers and sellers. C) It equals to the sum of new consumer and producer surplus resulted from tax. D) It is revenue government agency collects from buyers and sellers from imposing per unit tax.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 4CQQ
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