A tax increase is usually borne

Name: A tax increase is usually borne
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A tax increase is usually shared by both the seller and the buyer. Depending on the elasticity of demand and supply, the burden of the tax may be shifted more towards one party than the other, but in most cases, both parties end up sharing the burden. Therefore, option C, which suggests that the tax increase is partially borne by the seller and partially by the buyer, is the best choice.

A Tax Increase Is Usually Borne