The incidence of a tax is unrelated to

Name: The incidence of a tax is unrelated to
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The incidence of a tax refers to who ultimately bears the burden of the tax. This can depend on the relative elasticities of supply and demand, but it is unrelated to who pays the tax out of pocket. For example, a tax on cigarettes may be paid by the smoker at the time of purchase, but the incidence of the tax may be primarily on the tobacco companies or the retailers who sell the cigarettes.

The Incidence of a Tax Is Unrelated to