What is meant by "the incidence of the tax"?
A)how much is the tax.
B)why the tax rate changed.
C)who changed the tax.
D)ultimate economic effect of the tax on the real income of consumers and producers.

Question

Quizplus · Accepted Answer

The incidence of the tax refers to the ultimate economic effect of the tax on the real income of consumers and producers. It considers who actually bears the burden of the tax and how it affects their behavior. The other choices (A, B, and C) do not capture the full meaning of the incidence of the tax.

What Is Meant by "The Incidence of the Tax