In general,a $1 tax placed on each unit a producer sells will be
A) entirely borne by the producers.
B) split 50/50 between producers and consumers.
C) entirely borne by the consumers.
D) shared between producers and consumers.
E) entirely shifted to consumers.

Question

Quizplus · Accepted Answer

The tax burden is generally shared between producers and consumers depending on the price elasticity of demand and supply. Neither producers nor consumers typically bear the entire tax burden.

In General,a $1 Tax Placed on Each Unit a Producer