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The graph shows the market for office rental space. A $400 per month excise tax is imposed on firms selling office space. D is the demand curve, S1 is the supply curve in the absence of the tax, and S2 represents the supply curve that includes the tax. Which group has the larger tax incidence? This excise tax falls on this group because Price ($) 3600 3500 3200 S2 S Quantity S1 D

The graph shows the market for office rental space. A $400 per month excise tax is imposed on firms selling office space. D is the demand curve, S1 is the supply curve in the absence of the tax, and S2 represents the supply curve that includes the tax. Which group has the larger tax incidence? This excise tax falls on this group because Price ($) 3600 3500 3200 S2 S Quantity S1 D

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 6CQQ
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The graph shows the market for office rental space. A $400 per month excise tax is imposed on firms selling office space. D is the demand curve, S1 is the supply curve in the absence of the tax, and S2 represents the supply curve that includes the tax. Which group has the larger tax incidence? This excise tax falls on this group because Price ($) 3600 3500 3200 S2 S Quantity S1 D
Transcribed Image Text:The graph shows the market for office rental space. A $400 per month excise tax is imposed on firms selling office space. D is the demand curve, S1 is the supply curve in the absence of the tax, and S2 represents the supply curve that includes the tax. Which group has the larger tax incidence? This excise tax falls on this group because Price ($) 3600 3500 3200 S2 S Quantity S1 D
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