Since taxes affect only the price paid by the buyer,they cannot have an adverse impact on the allocation of society's resources.

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Taxes can have an adverse impact on the allocation of society's resources. For example, high taxes on cigarettes may discourage smokers from purchasing them and lead to a decrease in demand for tobacco products. This could result in reduced production of tobacco and a shift in resources away from tobacco farming and towards other industries. Additionally, taxes on certain goods or services may disproportionately affect certain groups, leading to unequal resource allocation.

Since Taxes Affect Only the Price Paid by the Buyer,they