In the context of taxation, how does the concept of tax incidence relate to marginal benefit, and what implications can be drawn from a graphical representation of these concepts?

Tax incidence refers to who actually bears the burden of a tax, whether it's the sellers or the buyers. When a tax is imposed, it can change the prices that consumers pay and the amount that producers receive. This relates to marginal benefit because the price consumers are willing to pay reflects the additional satisfaction they get from the product. For example, if a tax raises the price of a soda, some people might buy less soda because the extra benefit doesn’t outweigh the higher cost. Graphically, this can show how the tax creates a deadweight loss, which is the loss of economic efficiency when the quantity of goods traded decreases due to the tax.