Which of the following statements is TRUE?
I. Buyers bear the majority of the tax burden if the tax is originally imposed on buyers.
II. Buyers bear the majority of the tax burden if the tax is originally imposed on sellers.
III. Buyers and sellers will always bear equal amounts of the tax burden.
IV. Buyers and sellers will jointly bear the tax.
A) I only
B) II only
C) III only
D) IV only

Question

Quizplus · Accepted Answer

The tax burden is shared between buyers and sellers regardless of who the tax is initially imposed on, depending on the relative elasticities of demand and supply.

Which of the Following Statements Is TRUE