It is a common misconception that the incidence of a tax (i.e.,
how the burden of the tax is actually divided between consumers and
producers) depends on who is legally responsible for paying the tax
to the government.
[2 points] Briefly explain why the legal assignment of the tax
does not determine the real incidence of the tax. For example, if
the government collects the tax entirely from producers (it does
not collect any taxes from consumers), how do consumers...