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

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

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

If a Tax Is Imposed on the Buyers of a Product