In general,the incidence of an excise tax is shared between buyers and sellers.

Question

Quizplus · Accepted Answer

When an excise tax is imposed on a product, the price of the product increases for buyers. This leads to a decrease in the quantity demanded. At the same time, the tax eats into the profit margins of sellers. As a result, both buyers and sellers bear some of the burden of the tax. The extent to which each group bears the burden depends on the relative elasticities of demand and supply.

In General,the Incidence of an Excise Tax Is Shared Between