Price $3.50 3 2.50 Supply Demand Demand + $1 tax 1,200 1,500 Quantity The graph above illustrates a market for gasoline with a $1 tax imposed on the buyers. What is the buyer's tax incidence?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 50CTQ: Explain why voluntary Martians improve social welfare.
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Price
$3.50
3
2.50
Supply
Demand
Demand + $1 tax
1,200 1,500
Quantity
The graph above illustrates a market for gasoline with a $1 tax imposed on the buyers. What is the buyer's tax incidence?
Transcribed Image Text:Price $3.50 3 2.50 Supply Demand Demand + $1 tax 1,200 1,500 Quantity The graph above illustrates a market for gasoline with a $1 tax imposed on the buyers. What is the buyer's tax incidence?
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