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Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. The amount of the tax paid by the consumer is

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Answer:

The answer is "[tex]\$1.25 \ and \ \$1[/tex]"

Explanation:

The balance price has been [tex]\$2.50[/tex], ahead of taxation. It implies seller paid [tex]\$2.50[/tex] as well as sellers got [tex]\$2.50[/tex] whenever a [tex]\$2.25[/tex] the tax has also been applied Pay $3.50,  buyer, and also get $1.25 seller.

Its seller's tax [tex]= \$2.50 - \$1.25 = \$1.25[/tex]

The buyer's tax [tex]= \$3.50-\$2.50 = \$1[/tex]

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