contestada

Suppose the market is initially in equilibrium at price P1 and then the government Price imposes a tax on every unit sold. Which of the following statements best describes the impact of the tax? A. The consumer will bear a greater share of the tax burden if the demand B. The consumer will bear a greater share of the tax burden if the demand C. The consumer will bear the entire burden of the tax if the demand curve is St curve is D curve is D D1 and the producer will bear the entire burden of the tax if the demand curve is D Quantity D. The consumers share of the tax burden is the same whether the demand curve is D1 or D2

Respuesta :

KunalYadav273

The consumer will bear a smaller share of the tax burden if the demand curve is D0.

When is market at equillibrium?

When quantities demanded and supplied are equal in price, equilibrium is reached. The combined price and quantity at which the supply and demand curves cross can be used to graphically portray a market in equilibrium.

A new equilibrium price and quantity are produced when the factors that determine supply and/or demand change. The former price will no longer be an equilibrium when there is a change in supply or demand. Instead, a scarcity or excess will occur, and the price will then change until a new equilibrium is reached.

Also known as the "market clearing price," this is the cost in a market at which the quantities of an item being supplied and sought are equal.

"To know more about  demand curve ", visit:

https://brainly.com/question/1139186

#SPJ4 "

Otras preguntas