Which of the following is true?
i.A tax on buyers has the same effect as the same sized tax on sellers.
ii.The more elastic the demand,the larger is the share of the tax paid by the buyers.
iii.The U.S.income tax is regressive.

Question

Quizplus · Accepted Answer

A tax on buyers has the same effect as the same sized tax on sellers because it shifts the demand or supply curve by the same amount, leading to the same equilibrium outcome. The more elastic the demand, the smaller is the share of the tax paid by the buyers, not larger. The U.S. income tax is generally considered progressive, not regressive.

Which of the Following Is True