If a tax is imposed on the sellers of a product, then the tax burden will fall entirely on the sellers.

Name: If a tax is imposed on the sellers of a product, then the tax burden will fall entirely on the sellers.
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Quizplus · Accepted Answer

The tax burden is typically shared between sellers and buyers, depending on the elasticities of supply and demand. If demand is more elastic than supply, sellers bear a larger burden of the tax, and vice versa.

If a Tax Is Imposed on the Sellers of a Product