The actual division of a tax between buyers and sellers in a market is the excess burden of the tax.

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Quizplus · Accepted Answer

The excess burden of a tax, also known as the deadweight loss, refers to the efficiency loss that occurs when a tax is imposed. It results from the fact that buyers and sellers change their behavior in response to the tax, leading to a reduction in the quantity traded in the market. The actual division of the tax between buyers and sellers depends on the price elasticity of demand and supply, and it can vary from one market to another. Thus, the excess burden of the tax is not related to the division of the tax between buyers and sellers.

The Actual Division of a Tax Between Buyers and Sellers