If a tax is imposed on the buyer of a product,the tax incidence will fall entirely on the buyer,causing the buyer to pay more.

Name: If a tax is imposed on the buyer of a product,the tax incidence will fall entirely on the buyer,causing the buyer to pay more.
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Quizplus · Accepted Answer

The tax incidence depends on the relative elasticities of demand and supply. If demand is inelastic relative to supply, the buyer will bear more of the tax burden, but not necessarily all of it.

If a Tax Is Imposed on the Buyer of a Product,the