When price competition is fierce, companies easily shift the burden of a tax increase to their customers via higher prices.

Name: When price competition is fierce, companies easily shift the burden of a tax increase to their customers via higher prices.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a market with fierce price competition, companies have limited ability to pass tax increases onto customers through higher prices without risking loss of market share to competitors.

When Price Competition Is Fierce, Companies Easily Shift the Burden