If the government imposes a $3 tax in a market, the buyers and sellers will share an equal burden of the tax.

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russell gaston · Accepted Answer

Final Answer : False, Explanation :  The division of the tax burden between buyers and sellers depends on the relative elasticities of supply and demand. It does not automatically split equally.

If the government imposes a $3 tax in a market, the buyers and sellers will share an equal burden of the tax.

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