Who pays the majority of a tax levied on a product depends on whether the tax is placed on the buyer or the seller.

Name: Who pays the majority of a tax levied on a product depends on whether the tax is placed on the buyer or the seller.
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Question

Quizplus · Accepted Answer

The incidence of a tax, or who bears the burden, depends on the relative elasticities of supply and demand, not on whether the tax is levied on the buyer or the seller.

Who Pays the Majority of a Tax Levied on a Product