Suppose a tax is imposed on the buyers of a product.On whom will the burden of the tax fall
A)on the buyers and the government
B)on the sellers and the government
C)on the buyers, sellers and the government
D)on the buyers and the sellers

Question

Quizplus · Accepted Answer

The burden of the tax will fall on both the buyers and the sellers. The sellers will have to pay for the cost of the tax which may increase the price of the product to cover the cost. This would result in the buyers taking on some of the cost of the tax as well. Therefore, the burden of the tax will be split between the buyers and sellers.

Suppose a Tax Is Imposed on the Buyers of a Product.On