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
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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.
Transcribed Image Text: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.
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