The diagram shows the supply and demand curves for a product.
The government imposes an indirect tax on the product.
What will be the outcome of this for the producers’ revenue and the incidence of the tax burden?
effect on revenue: fall / main incidence of the tax: consumer
2 )
effect on revenue: fall / main incidence of the tax: producer
3 )
effect on revenue: rise / main incidence of the tax: consumer
4 )
effect on revenue: rise / main incidence of the tax: producer
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