A tax imposed on the buyers of a good will

Asked by admin @ 26/11/2021 in Business viewed by 277 People

The term tax incidence refers to a. whether the demand curve or the supply curve shifts when the tax is imposed. b. whether buyers or sellers of a good are required to send tax payments to the government. c. the distribution of the tax burden between buyers and sellers. d. widespread view that taxes (and death) are the only certainties in life.

Answered by admin @ 26/11/2021

Answer:

The answer is C.

Explanation:

Tax incidence can also be termed as tax burden. It is the distribution of a particular tax burden on either the producers or consumers or both. It helps to know the impact that the tax levied has on the producers or the consumers.

Tax incidence depends on the elasticity of demand and supply also. When supply is more elastic than demand, consumers feel the impact more and when demand is more elastic than supply, producers feel the impact more.

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A tax imposed on the buyers of a good will

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