maximize producer surplus

are efficient

are inefficient

are equitable

everyone has as much as they would like

the benefit buyers place on medical care is equal to the cost of producing it

buyers receive no benefit from another unit of medical care

we must cut back on the consumption of other goods

efficiency Sue should receive the glove

efficiency Joe should receive the glove

equity, Joe should receive the glove

consumer surplus both should receive a glove

Rs. 500

Rs. 300

Rs. 200

Rs. 400

The incidence which falls on consumers plus the incidence which falls on producers equals the amount of the tax

The incidence falls more heavily on producers than consumers if the demand curve is flatter than the supply curve

The incidence falls more heavily on consumers than producers if the supply curve is flatter than the demand curve

The incidence always falls wholly on consumers