Buyers and sellers always share the burden of a tax equally.

Name: Buyers and sellers always share the burden of a tax equally.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The division of the tax burden between buyers and sellers depends on the relative elasticities of supply and demand. If demand is more elastic than supply, sellers bear a larger share of the tax burden, and vice versa.

Buyers and Sellers Always Share the Burden of a Tax