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
Chapter1: Making Economics Decisions
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14d8a7c5-1215-4cbc-b025-3ac5ed29ce16%2F1706f5c9-0199-45a7-8016-eb3943f504bc%2Fhy1wte9_processed.jpeg&w=3840&q=75)
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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