Answer to Question #298267 in Microeconomics for garg

Question

Suppose the government removes a tax on buyers of a good and levies a tax of the same size

on sellers of the good. How does this change in tax policy affect the price that buyers pay sellers

for this good including the tax, the amount sellers receive net of the tax, and the quantity of the

good sold?

Answer 1

This change in tax policy will not affect the price that buyers pay sellers for this good including the tax, the amount sellers receive net of the tax, and the quantity of the good sold.