In the end, tax incidence:

Question

Quizplus · Accepted Answer

Tax incidence refers to who ultimately bears the burden of a tax. It can either fall on the buyers, the sellers or be shared between the two groups depending on the relative elasticities of supply and demand. If demand is more elastic than supply, then buyers bear a larger portion of the tax burden, while if supply is more elastic than demand, the burden falls more heavily on the sellers. Therefore, tax incidence depends on the relative elasticities of supply and demand.

In the End, Tax Incidence