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Welcome to the Q&A for ECN/APEC 2010, where you can ask questions and receive answers from your fellow students, the TA, and your professor.

Please only ask questions about the material for the course. Try to create discussions about the material we see in class, instead of just thinking of economics in general (this is an introduction to microeconomics class, not a policy or government class).

For questions and discussions about course organization or other course related topics, come see us after class or during office hours.

Feel free to discuss quiz questions on the Q&A, but do not provide direct answers to quiz questions before the quiz's due date.

Taxes imposed on buyer?

+1 vote
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As I am going through the second midterm, question 3 brings up a tax being imposed on a seller. The buyer takes the majority of the tax and the seller only pays a piece. What would be the result of a tax being imposed on a buyer? Would the seller take the majority of the tax?
asked May 1 by canvas-111f4c97e5534 (185 points)

2 Answers

0 votes
 
Best answer
Yes if you remember when in class we went over the tax wedge martin proved that it didn't really matter who the tax was imposed on the effects would still be the same as long as the amount of the tax was the same of course.
answered May 1 by canvas-946e15a61c43e (150 points)
selected May 3 by canvas-111f4c97e5534
+1 vote
As you recall there is a tax wedge placed when there is a tax regardless of whom it is placed upon. The one who will pay the bigger part of the tax is the one who has a more inelastic demand or supply curve.
answered May 1 by canvas-db91aa5f3dea5 (156 points)
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