Question

Suppose the figure to the right represents the market for cotton. To help reduce​ debt, the government decides to levy a tax on cotton of ​$0.90 per pound to be paid by cotton farmers. What is the incidence of this​ tax? Producers pay ​$------- of the ​$0.90 tax and consumers pay ​$ -------. ​(Enter your responses rounded to two decimal​ places.)

Suppose the figure to the right represents the market for cotion. To help reduce debt, the government decides to levya tax on cotton of $0.90 per pound to be paid by cotton farmers What is the incidence of this tax? Producers pays of the $0.90 tax and consumers pay $(inter your responses rounded to decw places) 240 150 Supply 1 120 1.00 Pie 0.60 00 0.20 200 400 60 300 Quantity pounds in 1000 Demand 1000 Enter your answer in the edited and then click Check Answer All parts showing Clear

Answer 1

2.40 220 2.00 180 190 Supply 40 Tax Incidence 1.00 OM 0.40 100 Quantity pounds in 1000 Dennand 1000

As per the above image, producers pay $ 0.6 of the $0.9 tax and consumers pay $ 0.30