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

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

Quizplus · Accepted Answer

The burden of a tax between buyers and sellers depends on the relative elasticities of supply and demand. If demand is more elastic than supply, sellers bear a larger burden of the tax, and vice versa. It's rare for both sides to share the burden equally due to differences in these elasticities.

Buyers and Sellers Rarely Share the Burden of a Tax