If a tax is imposed on a product,the buyer will always bear the entire burden of the tax.

Question

Quizplus · Accepted Answer

The burden of the tax can be shared by the buyer and the seller depending on the market conditions such as the price elasticity of demand and supply. In some cases, the seller may increase the price to pass on the tax burden to the buyer while in other cases, the seller may absorb some or all of the tax to remain competitive.

If a Tax Is Imposed on a Product,the Buyer Will