Question: [elated to Solved Problem 5.3 on page 198] Solved Problem 5.3 contains the statement: Of course, the government actually collects the tax from sellers rather
[elated to Solved Problem 5.3 on page 198] Solved Problem 5.3 contains the statement: “Of course, the government actually collects the tax from sellers rather than from consumers, but we get the same result whether the government imposes a tax on the buyers of a good or on the sellers.” Demonstrate that this statement is correct by solving the problem assuming that the increase in the tax on gasoline shifts the supply curve rather than the demand curve.
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