Question:
How can, using again a Supply Demand Diagram, split the Total Tax to what the Consumer has to Pay [For the Tax] and what the Producer has to Pay
Author: eric_galvaoAnswer:
-Total Tax will be the Addition of what Both Economic Agents have to Pay. The Consumer Share will be the New Equilibrium Price and the Equilibrium Point [After the Supply Curve has Shifted] but will End at where Quantity Demanded / Supplied is Same as the Equilibrium Demanded, but at the Price Level of where the Old Equilibrium Point is. The Producer Share will go from That last point mentioned, its Price Level, The Point [Same Qd] that lies on the Old Supply Curve, and that Respect Price Level.
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