If the government removes a $1 tax on sellers of gasoline and imposes the same $1 tax on buyers of gasoline,then the price paid by buyers will

Question

Quizplus · Accepted Answer

The tax incidence, or the burden of the tax, does not depend on whether the tax is levied on buyers or sellers. The market outcome remains the same, so the price paid by buyers and the price received by sellers do not change.

If the Government Removes a $1 Tax on Sellers of Gasoline