<blockquote>
  <p>Is this like taxing the demand vs taxing the supply?</p>
</blockquote>

<p><strong>Yes.</strong></p>

<p>Taxing consumers reduces their willingness to pay. Therefore demand curve shifts down. </p>

<p>Taxing producers raises their cost of production. Hence the marginal cost curve shifts up. </p>

<p>As long as it's the same amount of per unit tax, the tax creates the same wedge between MR and MC curves, regardless of whether it's on consumers or producers. So the tax incidence is the same.</p>

CC BY-SA 3.0
2018-03-02T20:47:17.847Z
2018-03-02T20:47:17.847Z
Herr K.
<p>can someone explain me why in some books the Demand and marginal revenue moves and but in other books is the marginal cost that moves. Is this like taxing the demand vs taxing the supply? so the economic incidence is the same?. Thank you.
<a href="https://mnmeconomics.files.wordpress.com/2011/09/specifictax.png" rel="nofollow noreferrer"><img src="https://mnmeconomics.files.wordpress.com/2011/09/specifictax.png" alt="enter image description here"></a></p>

<p>But in other books
<a href="https://i.sstatic.net/rbyeh.gif" rel="nofollow noreferrer"><img src="https://i.sstatic.net/rbyeh.gif" alt="enter image description here"></a></p>

<p>!</p>

<p>Sources <a href="http://www2.econ.iastate.edu/classes/econ101/choi/ch13monD.htm" rel="nofollow noreferrer">http://www2.econ.iastate.edu/classes/econ101/choi/ch13monD.htm</a>
<a href="http://www2.econ.iastate.edu/classes/econ101/choi/ch13monD.htm" rel="nofollow noreferrer">http://www2.econ.iastate.edu/classes/econ101/choi/ch13monD.htm</a></p>

<taxation><monopoly><self-study>
Taxing a monopoly
neto333
# Taxing a monopoly

(Asked by: username_0 on 2018-03-02)

can someone explain me why in some books the Demand and marginal revenue moves and but in other books is the marginal cost that moves. Is this like taxing the demand vs taxing the supply? so the economic incidence is the same?. Thank you.
[![enter image description here](https://mnmeconomics.files.wordpress.com/2011/09/specifictax.png)](https://mnmeconomics.files.wordpress.com/2011/09/specifictax.png)

But in other books
[![enter image description here](https://i.sstatic.net/rbyeh.gif)](https://i.sstatic.net/rbyeh.gif)

!

Sources <http://www2.econ.iastate.edu/classes/econ101/choi/ch13monD.htm>
<http://www2.econ.iastate.edu/classes/econ101/choi/ch13monD.htm>

**Tags:** taxation, monopoly, self-study


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## 1 answers

### Answer by username_1 on 2018-03-02. Score: 1 | Accepted answer

> Is this like taxing the demand vs taxing the supply?

**Yes.**

Taxing consumers reduces their willingness to pay. Therefore demand curve shifts down.

Taxing producers raises their cost of production. Hence the marginal cost curve shifts up.

As long as it's the same amount of per unit tax, the tax creates the same wedge between MR and MC curves, regardless of whether it's on consumers or producers. So the tax incidence is the same.


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