The economic burden of a tax borne by each party
A) is not dependent on the price elasticities of demand and supply.
B) indicates the incidence of taxation.
C) is always the consumer.
D) is always the supplier.

Question

Quizplus · Accepted Answer

The economic burden of a tax, also known as the incidence of taxation, refers to how the tax's cost is divided between buyers and sellers in the market. It does not always fall entirely on the consumer or the supplier, but rather depends on the relative elasticities of demand and supply.

The Economic Burden of a Tax Borne by Each Party