Which of the following is not correct?
A) Taxes levied on sellers and taxes levied on buyers are not equivalent.
B) A tax places a wedge between the price that buyers pay and the price that sellers receive.
C) The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax is levied on buyers or sellers.
D) In the new after-tax equilibrium, buyers and sellers share the burden of the tax.
Correct Answer:
Verified
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