The tax incidence indicates that tax is always paid by sellers.

Name: The tax incidence indicates that tax is always paid by sellers.
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

The tax incidence can be divided between buyers and sellers depending on the elasticity of the demand and supply curves. If the demand is more elastic than supply, buyers will bear more of the burden of the tax. If the supply is more elastic than demand, sellers will bear more of the burden. In some cases, both buyers and sellers may share the burden equally.

The Tax Incidence Indicates That Tax Is Always Paid by Sellers