Taxes levied directly on consumers

Name: Taxes levied directly on consumers
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Taxes levied directly on consumers have the same effect as taxes directly levied on producers because the burden of the tax is ultimately borne by both the producer and the consumer in the form of higher prices. The incidence of the tax will depend on the elasticity of supply and demand for the product, but the overall result is usually a higher price for the consumer and a lower net income for the producer.

Taxes Levied Directly on Consumers