If the government taxes Internet service $15 a month, does the buyer or the seller pay more
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If the government taxes Internet service $15 a month, does the buyer or the seller pay more of the tax? What is the tax revenue? What is the excess burden of the tax? Is the tax proportional, progressive, or regressive?
The table illustrates the market for Internet service.
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Price (dollars per month) 0 10 228458 20 30 40 50 60 Quantity demanded Quantity supplied (units per week) 30 25 20 15 10 5 0 0 10 20 30 40 50 60
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