Asked by
Devita Saunders
on Nov 17, 2024
Verified
If a tax is imposed on the buyers of a product, then the tax burden will fall entirely on the buyers.
Tax Burden
The total amount of tax levied on an individual or entity, indicating the actual economic impact of taxation on wealth.
Tax Imposed
A financial charge or levy placed by a government on an individual or an entity to fund public expenditures.
- Learn about the principle of tax incidence and the sharing of tax liabilities among purchasers and vendors.
- Understand the effects of elasticities of demand and supply on tax burden distribution.
Verified Answer
KC
Learning Objectives
- Learn about the principle of tax incidence and the sharing of tax liabilities among purchasers and vendors.
- Understand the effects of elasticities of demand and supply on tax burden distribution.